Prediction: Costco Will Be Worth More Than Wall Street Analysts Expect in 10 Years

Core Insights - Costco has a strong track record of exceeding earnings expectations and has consistently performed well in the stock market [1][13] - The company operates 914 warehouses globally, with over 600 located in the U.S., and has a significant presence in various countries [3] - Costco's business model relies heavily on customer memberships, which provide high-margin revenue and contribute significantly to its profits [4][5] Membership and Revenue - Membership fees are a major source of income, with the company reporting over $5 billion in membership revenue in the latest fiscal year [5] - Costco maintains a high membership renewal rate exceeding 90% in the U.S. and Canada, indicating strong customer loyalty [6] - The company's ability to offer low prices is supported by bulk purchasing, which enhances its competitive advantage [6][10] Market Position and Future Outlook - Costco is well-positioned to navigate challenges such as import tariffs due to its extensive supplier network and strong private label brand, Kirkland Signature [9] - The company's pricing strategy is advantageous during economic downturns, potentially driving revenue growth while competitors struggle [10] - Analysts have historically underestimated Costco's performance, with predictions suggesting the stock could reach $3,190 per share by 2035, representing a 248% increase from current levels [13][14] Stock Performance - Costco's stock has appreciated over 500% in the past decade, reflecting its strong earnings growth and market confidence [14] - The stock currently trades at 45 times forward earnings estimates, a premium justified by its business model and loyal customer base [11][12]