Costco(US:COST) Yahoo Finance·2026-01-13 13:20Core Insights - Costco has generated a total return of 16,810% over the past 30 years, indicating its strong performance as a retail stock [1] - The company currently has a market capitalization of $411 billion and reported net sales of $270 billion for fiscal 2025 [2] Company Strengths - Costco's warehouse stores benefit from durable demand, offering quality merchandise at low prices, which appeals to consumers in various economic conditions [3] - The company charges annual membership fees, resulting in a high membership renewal rate of 92.2% in Q1 2026, with total paid memberships increasing by 5.2% year over year to 81.4 million [4] - Costco's scale provides it with significant bargaining power with suppliers, leading to lower merchandise costs and benefiting consumers [5] Future Outlook - Management plans to achieve a yearly run rate of 30 net new store openings, indicating ongoing expansion potential despite the company's size [4] - The company is expected to remain relevant and thriving over the next 30 years due to its competitive position and scale advantages [5] Investment Considerations - Despite being 14% below its peak, Costco's stock is not considered a bargain, trading at a price-to-earnings ratio of 49.5, which is viewed as too high [6] - Investors are advised to wait for a price pullback before considering an investment in Costco, as the current valuation may limit potential market-beating returns over the next five to ten years [6] - The company's mature status and high starting valuation may discourage some investors [7]