Should You Buy Costco Stock Before 2026?

Core Viewpoint - Costco Wholesale is experiencing a rare off year, with its stock performance flat while the S&P 500 has increased by 17%, raising questions about whether this presents a buying opportunity or a reason to avoid the stock [1]. Group 1: Company Performance - Costco continues to show robust growth, benefiting from its membership model that provides reliable recurring revenue and profits, which remains strong despite inflation and tariff concerns [1]. - The company performs well during recessions, as it sells essential items at low prices, making it a go-to option for consumers [1]. Group 2: Membership Model - While the membership fee may deter some potential buyers, it proves worthwhile for customers who shop frequently, fostering loyalty, high volume, and increasing sales [2]. Group 3: Financial Metrics - Costco's current market capitalization stands at $404 billion, with a current stock price of $911.96 [3]. - The stock has a P/E ratio that has decreased from over 60 to 50, indicating a high valuation despite being lower than the previous year [4]. Group 4: E-commerce Expansion - The company is expanding its e-commerce and digital presence, including online sign-ups and renewals, which investors are monitoring for its impact on business [5]. Group 5: Investment Outlook - Long-term investors may find this period an attractive time to buy shares, as Costco has several favorable conditions and a strong business model that thrives in various circumstances [6].