Costco Finally Breaks Out: Is There Still Time to Buy?

Core Insights - Costco Wholesale Corp. has seen a significant 10% increase in shares at the start of 2026, driven by strong December sales data and bullish technical signals [2] Sales Performance - For the five weeks ending January 4, Costco reported sales of $29.86 billion, reflecting an 8.5% year-over-year (YOY) increase. Comparable sales in the U.S. rose by 6% YOY, while Canadian and international comps increased by 8.4% and 10.6%, respectively [3] - Digital-enabled sales surged nearly 19% YOY, indicating a positive shift in Costco's e-commerce performance, following a 16% growth in November. This growth is contributing to larger average ticket sizes, which increased by 4.2% in December, and higher customer traffic [4] Financial Health - Total sales for fiscal 2025 reached approximately $269 billion, marking an increase of over 8% from 2024. Net income surpassed $8 billion, and membership retention rates in the U.S. and Canada remained above 90%, although some slippage has been noted [7] - Despite a nearly 20% decline in shares during the second half of 2025, Costco's strong sales performance positions the company for growth in 2026, with a recent 10% stock increase in the last two weeks [6]