Costco stock rose 38.8% in 2024 due to retail model success and e-commerce growth

From NASDAQ.: 2025-01-09 17:39:00

Costco Wholesale (NASDAQ: COST) saw its shares rise 38.8% in 2024, with a market cap over $400 billion and annual sales of $260 billion. The company’s retail model and e-commerce growth contributed to its success. While Costco’s stock returns benefited from market growth and expansion of its P/E multiple, it may be overvalued at current prices with a high P/E ratio. The Motley Fool Stock Advisor team did not include Costco in their list of top 10 stocks for investors to buy now, citing potential risks and limited growth opportunities.

Costco’s dominance in the retail sector is evident through its membership-based pricing, bargain prices, and revenue growth. With quarterly revenue reaching $94 billion and e-commerce revenue up 17.1%, Costco continues to expand its market presence. However, the company’s stock may be at a peak valuation, posing a risk for investors. Additionally, the Motley Fool advises caution before investing in Costco Wholesale given its current valuation and growth prospects.



Read more at NASDAQ.: Why Shares of Costco Stock Zoomed Higher in 2024