Where Will Costco Stock Be in 1 Year?
Key Points
Despite the stock price being under pressure, Costco’s P/E ratio still looks elevated.
The market will once again appreciate just how great of a business this is.
- 10 stocks we like better than Costco Wholesale ›
Costco (NASDAQ: COST) has historically been a wonderful investment. Shares have significantly outperformed the S&P 500 in the past three decades. But that track record hasn't held up recently, with the retail stock dropping 14% in the past 12 months (as of Dec. 16). The index is up double digits at the same time.
Where will Costco be one year from now?
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 »
Image source: Getty Images.
Valuation matters more in the short run
Over a shorter time horizon, market sentiment has the biggest impact on stock prices. This is reflected in valuation. Costco doesn't look cheap, as it trades at a price-to-earnings (P/E) ratio of 45.8, in line with the trailing five-year average. That has come down considerably since the start of this year, though.
Costco is a superb business
This valuation looks pricey, but it's worth highlighting that the market typically rewards Costco with an elevated P/E multiple. That's because the investment community understands that this is an exceptional business.
Costco constantly posts same-store sales growth, regardless of economic conditions. It has an extremely loyal customer base. And its scale provides it with a major cost advantage, allowing it to sell merchandise at low prices. Plus, new store growth indicates opportunity ahead.
The stock is about to finish 2025 with a loss. Looking at the next 12 months, I expect the market to once again appreciate the company's dominant industry position and solid financial results. I wouldn't be surprised to see Costco shares post a double-digit gain in 2026.
Should you buy stock 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 $509,039!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,109,506!*
Now, it’s worth noting Stock Advisor’s total average return is 972% — a market-crushing outperformance compared to 193% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of December 21, 2025.
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.
Recommended Articles
