Prediction: 3 Stocks That'll Be Worth More Than Costco 10 Years From Now

Group 1: Costco Overview - Costco's stock price has risen significantly, with a forward-looking price-to-earnings (P/E) ratio of 50, above its five-year average of 39, and a price-to-sales ratio of 1.53, exceeding its five-year average of 1.08 [2] - The company operates 903 locations globally, with a market value of $428 billion, making rapid growth challenging [3] - Costco has averaged annual gains of around 20% over the past 10 to 15 years, but a conservative estimate suggests a 12% growth rate could lead to a market value of $1.3 trillion in a decade [3] Group 2: Taiwan Semiconductor Manufacturing - Taiwan Semiconductor Manufacturing (TSM) holds a dominant position in the semiconductor industry, with a market share of 67% [4] - The company plans to invest over $100 billion in U.S.-based plants, benefiting from a joint venture with Intel and increasing demand for chips due to the rise of artificial intelligence [5] - TSM's stock has grown at an average annual rate of around 20% over the past 10 to 15 years, and a 10% growth rate could increase its market value from $823 billion to $2.1 trillion [6] Group 3: Alphabet - Alphabet, the parent company of Google, has a market value of $1.9 trillion and is considered undervalued with a forward P/E of 16.3, below its five-year average of 22.5 [7] - The company has ambitious spending plans that could drive future growth, despite concerns about potential government intervention [7] - Alphabet's diverse portfolio includes YouTube, Nest, and ventures into healthcare and self-driving technology, positioning it for continued growth [7] Group 4: Tencent Holdings - Tencent Holdings has a market value of $513 billion and needs to increase its value by a factor of 2.5, averaging a 10% annual gain to surpass Costco [8] - The company has averaged annual gains of 11% over the past decade and is currently undervalued with a forward P/E of 2.1, well below its five-year average of 7.5 [9] - Tencent owns WeChat, a leading social media platform in China, and is involved in mobile gaming, fintech, and cloud software, indicating strong growth potential despite trade war uncertainties [9][10]