has established itself as a premier retailer as its market cap has swelled to more than $400 billion. By establishing a high-margin membership and an elevated shopping experience, Costco has differentiated itself from most other retailers in the US. This has allowed the company to focus on quality, while growing its membership base and opening new stores (both in the US and abroad).
As such, we’ve seen the company’s earnings and revenue steadily climb over the years (shown below) — along with its stock price. Shares are up 102% over the past three years, 169% over the past five years and 561% over the past decade. Costco stock has outperformed the S&P 500 on all three of these timeframes.
Growth Is Good, but Valuation in Question
Analysts expect about 13% earnings growth this year, followed by 10% to 11% growth in 2026 and 2027. On the revenue front, estimates call for sales…
