You Can Buy 1 Share of Costco for Less Than $1,000 Right Now. Here's Why the Price Could Go Up by the End of 2030.

Costco Wholesale (NASDAQ: COST) stock is trading for $954 per share today, June 26. Some investors think that's expensive, but I'm not terribly concerned about the price.

I mean, the stock looks pricey by pretty much any metric, especially in the context of its discount-retailer peers. From Walmart and Target to Dollar Tree and PriceSmart, they all trade at lower price-to-whatever ratios than Costco. This is true for price to earnings, price-to-book value, even the growth-adjusted price-to-earnings-to-growth (PEG) ratio.

But the warehouse club has earned its lofty valuation ratios with fantastic business results, and I'm convinced that the best is yet to come. Here's why I expect Costco's stock to rise in the next five years, even from this high-priced starting point.

Wall Street loves Costco, too

I'm far from the only Costco bull out there.

• Wall Street agrees. The average analyst firm holds a buy rating on Costco's stock, with a consensus price target 14% above current levels.
• The true bears are few and far between. About 1.8% of Costco's shares are on loan to short-sellers, just below Walmart's 1.9%. No other discount retailer stands below 3.6% on this metric.
• The premium stock price is no accident. Costco wouldn't trade at 48 times trailing earnings and 48 times free cash flow if Wall Street were skeptical as a whole.
• There's still bullish momentum behind Costco. Despite its pricey valuation ratios, the stock has outperformed the S&P 500 and Nasdaq Composite market indexes in 2026.

What makes Costco's stock worth the splurge

Of course, having plenty of investors on my side of the bull/bear fence doesn't prove I'm right. The majority can be wrong in the long run, and so can the Street's experts.

So, let me translate "premium valuation" into plain English: Costco has earned the right to be expensive on Wall Street.

Its 82.9 million paid members keep coming back. The 92.2% renewal rate in the U.S. and Canada isn't just a number; it's a loyalty metric that most subscription businesses would trade their TikTok accounts for.

Membership fee income rose 10.7% to $1.37 billion in May's third-quarter 2026 report. These fees carry near-100% margins and fund aggressive price investments that competitors can't match. Without the paid loyalty program, Costco's store prices would be higher, and its profits would be even lower.

Image source: The Motley Fool.

Costco is going global, one warehouse at a time

The store network keeps expanding. Management targets 30+ net new warehouses annually over the coming years, with international growth accelerating in China, Spain, France, and Canada. Relocations to larger facilities with expanded gas stations are also driving higher volumes at existing locations.

Costco's tech upgrades are actually working. Its members now get same-day delivery in under 45 minutes. Artificial intelligence (AI)-powered product pages are generating triple-digit website traffic growth. Costco isn't exactly a tech company, but it's spending like one and seeing substantial returns on the investment.

The bottom line on Costco's big price tag

My headline said you can buy a share of Costco for under $1,000. Should you, though?

Costco's stock looks expensive until you consider what you're paying for: a membership-based cash machine with pricing power, international runway, and technology momentum. The premium valuation reflects premium execution.

So, the answer is yes. Costco's stock only looks high-priced at a glance. Dig deeper, and you'll see why it should keep rising over the next five years.

Anders Bylund has positions in Walmart. The Motley Fool has positions in and recommends Costco Wholesale, Target, and Walmart. The Motley Fool has a disclosure policy.