Costco Wholesale (NASDAQ: COST) has been a lucrative investment, turning early investors into millionaires. A $1,000 investment in Costco stock a decade ago would now be worth $6,400, outperforming the S&P 500 by $2,400. With 146 million cardholders, Costco has room for growth, but its high valuation may limit future returns.

Investors should be cautious as much of Costco’s past returns were due to a higher price-to-earnings ratio. Although earnings are growing at 10% annually, the stock is currently trading at 46 times earnings. Analysts project long-term earnings growth of 9%, potentially turning a $1,000 investment today into $2,600 in 10 years, excluding dividends.

The Motley Fool Stock Advisor team did not include Costco in their list of the 10 best stocks to buy. Past recommendations like Netflix and Nvidia have produced significant returns. Stock Advisor boasts a total average return of 979%, outperforming the S&P 500’s 195%. Stay informed with their latest top 10 list for potential investment opportunities.

Read more at Yahoo Finance: If You’d Invested $1,000 in Costco 10 Years Ago, Here’s Your Return Today