From Yahoo Finance: 2025-06-28 09:17:00

Costco stock has yielded a total return of 2,320% in the last 15 years, surpassing the S&P 500. Despite being expensive at 55.8 times trailing earnings, Costco maintains strong returns. Its ROIC outperforms Amazon in the e-commerce sector. The company’s growing cash profits and efficient capital utilization make it a solid investment.

Costco’s cash profits continue to grow, while the company effectively uses its capital. The ROIC is nearly double that of Walmart or Target and even surpasses Amazon’s in e-commerce. Costco’s consistent ROIC margins and growing cash flows create a shareholder-friendly environment, driving constant business improvements.

While Costco stock may seem expensive, its strong cash profits and growing ROIC make it a compelling investment. Consider the Motley Fool’s top 10 stock picks, which do not include Costco. The Fool’s Stock Advisor team has a total average return of 1,062%, significantly outperforming the S&P 500. Don’t miss out on potential monster returns.

Read more: Think Costco Wholesale Is Expensive? This Chart Might Change Your Mind.