Is Costco Stock Going to $1,000?

Core Viewpoint - Costco Wholesale continues to impress investors with a stock increase of 35% this year, outperforming the S&P 500, despite a slight pullback after fiscal fourth-quarter earnings [1] Group 1: Business Model and Membership - Costco operates a unique retail model that charges membership fees for access to low prices, utilizing warehouse-style stores and minimizing operational costs [2] - The company reports high membership renewal rates, with U.S. and Canada renewals at 92.9% and international renewals at 90.5% for the fiscal fourth quarter [3] - Paid memberships increased by 7.4% to over 76 million, with executive memberships rising by 9.6% to 35.4 million, which significantly contributes to global sales [3] Group 2: Financial Performance - E-commerce sales grew by 18.9% year over year in the quarter, indicating a strong shift towards online shopping [3] - Earnings per share (EPS) rose from $4.86 to $5.29, surpassing analyst expectations, while revenue grew by 1% to $78.2 billion, falling short of analysts' forecasts [3] Group 3: Stock Performance and Valuation - Costco stock has never reached a four-digit price, having split its stock four times since its IPO, with the last split occurring in 2000 [4] - The stock is currently trading at a premium valuation, significantly above its five-year average, reflecting strong investor demand [5] - To reach $1,000 from its current price of nearly $900, Costco stock would need to gain about 12%, a target considered achievable given its recent performance [7]