Should You Buy Costco Stock Before 2026?
Key Points
Costco has been reporting healthy sales increases and growing profits.
It has a recession-proof model, but the stock trades at a premium valuation.
- 10 stocks we like better than Costco Wholesale ›
Costco Wholesale (NASDAQ: COST) is having a rare off year. It's a stock that almost always beats the market, and as you go back in time, the outperformance keeps getting wider. However, Costco stock is roughly flat this year, even as the S&P 500 index has soared 17%. Is this a great time to buy? Or a signal to stay away?
Image source: Getty Images.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Costco, the company, is unstoppable
Costco continues to enjoy robust growth, and its membership model provides reliable recurring revenue and profits. That hasn't changed recently despite inflation and tariff worries. In fact, Costco is one of those companies that does well during recessions, since it sells the essentials shoppers always need to buy at the lowest prices.
While its membership fee may deter some buyers, for customers who shop enough each year, it's more than worthwhile. This powerful model generates loyalty, high volume, and increasing sales.
One thing that has changed recently is Costco's valuation. Its P/E ratio reached over 60 last year, and while Costco stock has always traded at a premium, that was already quite expensive. Now it's down to 50, which is still high.
Costco's model is changing, too, since it's expanding its e-commerce and digital presence. It now offers online sign-ups and renewals, and investors have been closely watching how this impacts the business.
It's unlikely that the stock is going to make any big moves before the end of the year, although it does report fiscal 2026 first-quarter earnings in December, which could affect the stock movement.
Long-term investors can see this as an attractive time to buy shares. Costco has many tailwinds and an excellent model that thrives under almost any circumstances.
Should you invest $1,000 in Costco Wholesale right now?
Before you buy stock in Costco Wholesale, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Costco Wholesale wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $580,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,084,986!*
Now, it’s worth noting Stock Advisor’s total average return is 1,004% — a market-crushing outperformance compared to 194% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of December 1, 2025
Jennifer Saibil 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.
Recommended Articles
