Famous for its inflation-proof hot dog and soda combo, Costco is known on Wall Street as a reliable stock with steady growth.
Fueled by solid sales, a successful business model built on paid memberships and regular dividends, Costco share prices have nearly tripled over the past five years, for a total return on investment of 188%, including reinvested dividends. In comparison, the S&P 500 index, which is a measure of the broad U.S. stock market, has seen a total return of 100% over the same time period.
Its popularity may come with a cost, however. Costco shares trade at a premium compared with its profits, leaving investors with “no room for error” if the company underperforms, Scot Ciccarelli, an analyst at Truist Securities, wrote in a recent note.
Even so, many investors believe Costco is well-positioned to withstand tariffs, according to analysts at UBS. As a consumer-staples retailer, it sells mostly products people continue to buy even in downturns, such as groceries, household essentials and health products.
Costco is also known for its bargain prices, made possible by thin margins subsidized by growing revenue from membership fees, which account for a significant share of the wholesaler’s profits.
Despite economic uncertainty, Costco continues to expand. The company plans to open about 30 new warehouses a year, with just over half in the U.S. and the rest abroad, per CNBC.
Costco reported fiscal fourth-quarter earnings after the closing bell on Sept. 25. Revenue came in at $86.16 billion, topping analysts’ expectations of $86.06 billion, according to LSEG.
Costco’s shares are up by about 3.7% so far in 2025 and were trading at $943 per share as of Wednesday’s market close.
Here’s how much a $1,000 investment would be worth now, based on Costco’s closing price of $943 on Sept. 25, 2025.
If you invested one year ago
Percentage change: 4.4%
Total as of Sept. 25: $1,043
If you invested five years ago
Percentage change: 188%
Total as of Sept. 25: $2,883
If you invested 10 years ago
Percentage change: 591%
Total as of Sept. 25: $6,909
If you invested when Costco went public in December 1985
Percentage change: 61,540%
Total as of Sept. 25: $616,398
By comparison, the total return on an S&P 500 index fund, including reinvested dividends, would have been 100% over five years, 242% over 10 years and 3,140% over 20 years.
And while Costco’s stock has been a strong performer over the past few years, past performance is no guarantee of future growth. Financial experts commonly recommend diversifying your investments instead of putting too much money into a single stock.
Low-cost index funds, which offer broad market exposure, typically provide more stability and lower fees than individual stocks.
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