If You'd Invested $10,000 in Costco Stock 10 Years Ago, Here's How Much You'd Have Today
Key Points
Costco's ability to consistently grow sales and profit is supported by an expanding store base and membership count.
At the current valuation, investors should be extremely cautious when considering buying shares.
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With fiscal 2026 third-quarter (ended May 10) net sales of $69.2 billion, Costco Wholesale (NASDAQ: COST) is the world's third-biggest retailer. It's a favorite among shoppers, who appreciate extremely low prices on high-quality merchandise. The business benefits from a robust competitive position.
And the retail stock has delivered for investors. If you'd bought $10,000 worth of Costco shares 10 years ago, here's how much you'd have today.
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Over the last decade, Costco stock has produced a total return of 661% (as of June 1). A $10,000 starting capital allocation would be worth $76,110 today. It's hard to have any complaints when you see this type of performance in your portfolio.
The S&P 500 index, by comparison, generated a total return of 328% during the same time.
Costco's success playbook is straightforward. The company continues to open new warehouses in the U.S. and internationally. It also keeps growing its membership base while occasionally raising annual prices. This has resulted in consistent revenue and profit gains, regardless of the macroeconomic backdrop.
Because it trades at an expensive valuation, however, investors should think long and hard about buying this retail stock right now. The current price-to-earnings ratio of 48.9 is almost double the S&P 500 index's multiple. This isn't a good entry point.
Should you buy stock in Costco Wholesale right now?
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Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.
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