Is Costco stock a buy right now?
Costco Wholesale Corporation (COST) stands out as a robust performer in the retail sector as of early May 2025, with shares trading near $999 and an average daily volume of 2.2 million—signalling sustained interest and liquidity among investors. The stock has enjoyed a remarkable 38% advance year-over-year, largely outperforming sector peers, and recently broke through the psychological $1,000 mark before a natural phase of consolidation. Costco's Q2 2025 results showed resilient momentum, with revenues of $63.7 billion, e-commerce sales growth of 20.9%, and impressively high membership renewal rates at around 90% in Canada and the U.S. Recent company developments, such as ongoing global warehouse expansion and an accelerating digital transformation, have bolstered confidence in its long-term vision. Market sentiment remains constructive, reflecting optimism around its recession-resistant model, predictable membership fees, and strategic push into international and online channels. While the company is trading at premium valuation levels, the consensus among more than 32 major national and global banks targets a price of $1,298.75. For Canadian investors, Costco’s steady performance, innovative drive, and consumer loyalty position it favourably at a time when retail sector stability is in high demand.
- Consistent double-digit revenue growth and strong e-commerce momentum year-over-year.
- Industry-leading membership renewal rates near 90% in Canada and the U.S.
- Proven digital transformation driving omnichannel sales growth and consumer engagement.
- Expansion continues globally, notably in Asia and China, increasing long-term addressable market.
- Resilient business model with steady cash flow and loyal consumer base.
- Valuation is currently at a premium versus most retail sector peers.
- Stiff competition from warehouse clubs and e-commerce giants may pressure margins near term.
- What is Costco?
- How much is Costco stock?
- Our full analysis on Costco </b>stock
- How to buy Costco stock in Canada?
- Our 7 tips for buying Costco stock
- The latest news about Costco
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been tracking Costco’s performance for over three years. Every month, over a million Canadians rely on us to make sense of market trends and pinpoint the best investment opportunities. Our insights are provided for informational purposes only and do not constitute investment advice. In line with our code of ethics, we have never been, and will never be, compensated by Costco.
What is Costco?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United States | U.S.-based, but significant presence and membership base in Canada. |
| 💼 Market | NASDAQ | Listed on NASDAQ; benefits from deep liquidity and global investor access. |
| 🏛️ ISIN code | US22160K1051 | Standard identifier facilitates international share ownership. |
| 👤 CEO | Ron Vachris | Appointed in 2024, brings operational continuity and Costco experience. |
| 🏢 Market cap | $441.24 billion USD | Among the world’s largest retailers, reflecting market confidence. |
| 📈 Revenue | $63.72 billion USD (Q2 FY25) | Strong top-line growth, driven by solid U.S. and e-commerce performance. |
| 💹 EBITDA | $2.32 billion USD (Q2 FY25) | Healthy earnings, supported by efficient operations and high volume. |
| 📊 P/E Ratio (Price/Earnings) | 58.32 (TTM) | Valuation is high; growth expectations and stability factor into pricing. |
How much is Costco stock?
The price of Costco stock is rising this week. As of today, Costco shares are trading at $999.04 USD, reflecting a 24-hour gain of $4.54 (+0.46%) and a weekly increase of 0.91%. With a robust market capitalization of $441.24 billion and an average 3-month daily volume of 2.2 million shares, the stock shows active investor interest. Costco’s P/E Ratio stands at 58.32, its dividend yield is 0.52%, and the stock maintains a beta of 1.00. Investors should note that while the stock’s steady momentum indicates potential, its premium valuation may signal periods of higher volatility ahead.
Compare the best brokers in Canada!Compare brokersOur full analysis on Costco stock
Costco Wholesale Corporation’s (NASDAQ: COST) latest quarterly results and its remarkable multi-year share price trajectory have been meticulously analyzed using advanced financial indicators, technical signals, and industry intelligence. Proprietary algorithms offer a comprehensive picture of a retail leader that continues to surprise analysts and investors alike. So, why might Costco stock once again offer a strategic entry point into the retail and consumer staples sector as we approach 2025?
Recent Performance and Market Context
Costco’s stock has shown exceptional momentum despite a challenging macroeconomic environment. Recently trading at $999.04 (as of May 2, 2025), the share price is up 0.91% on the week—marking a five-session winning streak. Over the past six months, COST is up 9.03%, with an impressive 38.63% year-over-year surge from a 52-week low of $720.63. This robust appreciation is underpinned by Costco’s strong financial execution and business resilience, making it a core holding for both institutional and retail investors globally.
Recent positive developments continue to boost sentiment. The company exceeded Wall Street expectations in its latest quarterly report (Q2 Fiscal 2025), driven by a 9.1% year-on-year net sales growth and a remarkable 20.9% jump in e-commerce sales. Equally important is a 6.8% rise in comparable sales—a key industry metric—demonstrating operational excellence. Membership renewal rates in the U.S. and Canada remain industry-leading at approximately 90%.
From a broader perspective, the retail sector’s defensive nature—especially during turbulent times—enhances Costco’s appeal. Rising consumer optimism, stabilizing interest rates, and strong demand for value-based retail have combined to create favorable conditions for the discount warehouse segment, uniquely positioning Costco to benefit.
Technical Analysis
Costco’s technical indicators strongly support continued upside, with most signals suggesting sustained bullish momentum. The Relative Strength Index (RSI 14) reads 56.33—well within bullish territory but still below overbought levels, indicating healthy price action. The MACD (12,26,9) at 3.57 reflects a positive crossover, signaling short-term positive momentum in the stock.
- 20-day MA: Price remains above, confirming short-term trend strength.
- 50-day MA: Sits at 971.56; COST’s break above this level has been sustained.
- 100-day and 200-day MAs: Both indicate medium- and long-term structural support, as the stock trades well above these averages.
Key support levels have moved up, with $985.00 serving as the most recent daily low. Below that, $950 and $925 offer further cushioning, representing previous consolidation zones. Resistance is focused at $1,006.38 (recent high), $1,050, and the 52-week high of $1,078.24. The breakout above the symbolic $1,000 barrier—supported by volume and a consistent MACD uptrend—reflects robust accumulation and conviction.
In summary, technical momentum remains positive, and the risk/reward structure is attractive, particularly for those seeking entries on pullbacks near established support.
Fundamental Analysis
- Revenue: Reached $63.72 billion (total), growing annually at over 9%, ahead of most direct competitors.
- Membership Fees: Up 7.4% to $1.19 billion, reflecting loyal customers and Costco’s compelling value proposition.
- Net Income & EPS: Both rose 2.6% despite industry cost pressures, demonstrating management discipline.
- E-commerce: Jumped 20.9% year-over-year, highlighting digital expansion and adaptability.
While Costco’s valuation is at a premium (P/E TTM: 58.32; Forward P/E: 52.99), this is justified by its dependable growth, fortress balance sheet, and reliable recurring revenue streams. Its S&P 500 inclusion and $441.24 billion market cap confirm its blue-chip status. With a 0.52% dividend yield and a $4.64/share annual payout, Costco underscores a commitment to shareholder returns. Its beta of 1.00 also indicates a balanced risk profile.
- A dependable recurring revenue base from its membership model
- Low markups (10–14% vs. over 25% for most traditional retailers)
- Rapidly growing international operations, particularly in Asia (notably China)
- A highly popular private-label brand (Kirkland Signature, now approximately 25% of sales)
Ongoing digital transformation and omnichannel integration further boost its competitive advantage. Even with higher multiples, Costco’s operational consistency and growth prospects provide solid underpinnings for continued upside.
Volume and Liquidity
Costco’s liquidity and market depth are significant advantages for both institutional and individual investors. The average daily trading volume stands at 2.2 million shares, reflecting strong investor engagement and transaction ease for large positions. A vast public float (442.66 million shares) and approximately 70% institutional ownership help support stable price dynamics and reduce volatility risk.
Current trading volume points to positive momentum rather than speculative activity, suggesting recent price gains are likely sustainable. Costco’s high liquidity profile facilitates dynamic price discovery, especially as the stock approaches new highs.
Catalysts and Positive Outlook
- International Expansion: Especially in China, where only seven warehouses currently operate—leaving significant room for growth.
- E-commerce: The recent 20.9% sales surge signals effective adaptation to shifting consumer behavior.
- Potential Membership Fee Increase: It's been eight years since the last increase; any change would directly benefit margins and earnings.
- Operational Innovation: Advanced logistics, enhanced digital services, and omnichannel solutions continue to drive customer loyalty and resilience.
- ESG Commitments: Ongoing sustainability and governance initiatives are increasingly vital for attracting long-term institutional investors.
In a context of expected steady GDP growth, declining inflation, and consistently strong demand for value, optimistic revenue projections (expected 8-10% annualized) are warranted. Costco’s recession-resistant brand and forward momentum support the case for continued value creation.
Investment Strategies
- Short-Term: Technical traders may seek retracements near $985 for entry. If momentum continues, a breakout above $1,006.38 may signal a run toward new highs, particularly before catalysts like earnings or international expansion news.
- Medium-Term: Investors aiming to align with macro and sector trends may find Costco’s consolidation phase an attractive window to build positions, with potential for higher returns as the stock retests the $1,050–$1,078 range.
- Long-Term: For those focused on capital preservation and compounding, Costco’s superior model, high market share, reliable revenue from memberships, and top renewal rates present a compelling risk/reward proposition. Despite the premium valuation, its performance throughout cycles justifies a long-term thesis.
Entries near technical support or prior to significant catalysts appear prudent. The long-term upside remains favorable for multi-year investors.
Is It the Right Time to Buy Costco?
In summary, Costco’s performance reflects a company that consistently overcomes economic headwinds and industry challenges with innovation, scale, and a loyal customer base. Its combination of double-digit e-commerce growth, aggressive international expansion, best-in-class renewal rates, and a fortress balance sheet positions it uniquely among both traditional and e-commerce retailers.
With technicals pointing higher, solid fundamentals, and several transformative catalysts—such as the possibility of a fee hike and bold international growth—Costco represents a compelling choice for investors seeking resilient, blue-chip growth. The current premium may reflect the market’s confidence in its continued outperformance, balancing both defensive and growth attributes as 2025 unfolds.
For investors pursuing reliable, long-term growth with clear upside, Costco’s position and outlook make it a serious candidate for portfolio inclusion—particularly as it appears ready to enter a new, sustained bullish phase in the evolving retail landscape.
Capitalizing on Costco’s unique strengths and positive momentum at this technical and fundamental turning point may allow investors to participate in one of the decade’s most compelling retail success stories.
How to buy Costco stock in Canada?
Buying Costco stock online is simple and secure when you use a regulated broker based in Canada. Opening an account today takes just minutes, and platforms allow you to invest from your computer or mobile device with peace of mind. There are two main methods: buying Costco shares directly (spot buying), or trading on their price movements via CFDs (Contracts for Difference). Each approach has distinct features suitable for different investment goals. For further assistance, a detailed comparison of top online brokers appears later on this page.
Spot Buying
A cash purchase means you buy Costco shares outright, becoming a shareholder and gaining rights to potential price appreciation and dividends. In Canada, most online brokers charge a transparent, fixed commission per transaction—typically around $5 to $10 per trade in CAD.
Example
If Costco's share price is $999.04 USD (about $1,360 CAD), with a $1,000 CAD stake you could buy about 0.73 shares after accounting for a typical $5 brokerage fee. Fractional shares are now available at many popular brokers, letting you invest the amount you want.
- Gain scenario: If Costco shares rise by 10%, your investment would be worth $1,100 CAD.
- Result: That’s a $100 gain, or +10% on your initial stake (before currency fluctuation and taxes).
Trading via CFD
CFD trading lets you speculate on Costco’s share price movement without owning the underlying share. Instead, you enter into a contract with the broker to pay (or receive) the difference in price from open to close. CFD brokers apply a spread (small markup on the price) and may charge overnight financing if you hold leveraged positions past market close.
Example
With a $1,000 CAD deposit, and using 5x leverage, you can open a position equivalent to $5,000 market exposure on Costco. If you correctly anticipate a price movement:
- Gain scenario: If Costco’s share price increases by 8%, your position earns 8% × 5 = 40%.
- Result: That’s a $400 gain on your original $1,000 (excluding fees and currency conversion).
Note: CFDs carry a higher risk due to leverage and are best suited for short-term, experienced investors.
Final Advice
Before investing, it’s essential to compare the fees and features offered by different Canadian brokers—these can include commissions, spreads, account minimums, and access to U.S. markets. The choice between spot buying and CFD trading depends on your strategy, risk tolerance, and investment horizon. To make an informed decision, consult our broker comparison guide later on this page and choose the method that best fits your financial goals.
Our 7 tips for buying Costco stock
| Step | Specific tip for Costco |
|---|---|
| Analyze the market | Review Costco’s strong performance in both its brick-and-mortar and e-commerce segments, keeping in mind its outperformance versus the retail sector and steady membership renewal rates in Canada and the U.S. |
| Choose the right trading platform | Select a Canadian brokerage that provides access to the NASDAQ and allows you to buy U.S. stocks efficiently, considering low FX conversion fees and reliable execution for Costco trades. |
| Define your investment budget | Determine how much you can invest in a high-priced stock like Costco, and consider starting with fractional shares if available to manage exposure, given its premium valuation at nearly $1,000 USD per share. |
| Choose a strategy (short or long term) | Costco tends to reward patient, long-term investors due to its consistent revenue growth and stable business model, though active traders may look to capitalize on technical peaks or news-driven volatility. |
| Monitor news and financial results | Follow Costco's quarterly earnings, especially updates on Canadian and international expansion, membership fee changes, and e-commerce growth, as these can significantly impact the stock price. |
| Use risk management tools | Set stop-loss orders or use limit orders to manage entry points and control downside, particularly as Costco’s share price may be volatile around earnings or broader market shifts. |
| Sell at the right time | For Canadian investors, consider profit-taking when Costco reaches technical resistance levels or after major positive earnings announcements, but be mindful of currency movement between CAD and USD. |
The latest news about Costco
Costco's Canadian operations remain robust, with industry-leading membership renewal rates near 90% in Canada. This metric highlights Costco’s exceptional customer loyalty among Canadian members and reflects the strength and resilience of its local subscription-based revenue stream. Recent disclosures confirm the company continues to outperform in Canada, maintaining renewal rates that are on par with or surpass those in the United States. For Canadian investors and analysts, this indicator underscores the company’s predictable cash flow and entrenched market position in the region.
The company reported double-digit e-commerce growth, a trend also evident in Canada’s expanding digital market. E-commerce sales grew by 20.9% globally in the most recent quarter, and while U.S. operations led the surge, Canadian buyers represented a significant portion of this digital expansion. Costco’s focus on omnichannel integration, expedited delivery options, and expanded online product assortments continues to resonate with Canadian consumers, who are increasingly shopping online. This ongoing success in adapting its e-commerce model for the Canadian market reinforces the brand’s relevance amid a shifting retail landscape.
Canadian warehouse expansion continues, supporting Costco’s long-term growth prospects and market penetration in Canada. Costco has confirmed it is actively increasing its Canadian footprint, bringing the total number of locations in the country to over 100, with new stores and renovations recently announced or underway across several provinces. These investments signal the company's confidence in Canadian consumer demand and contribute to local job creation and supply chain activity. For Canadian residents and investors, this strengthens Costco’s presence as a key player in the national retail sector.
Costco exceeded quarterly analyst expectations, benefiting Canadian investors with exposure to the company via North American indices. The recent earnings report showed revenue and net income growing ahead of Wall Street forecasts, powered by increased comparable sales and robust membership fee income. Given that many Canadian institutional investment funds and ETFs include Costco in their U.S. or North American holdings, these positive results enhance the value proposition for Canadian portfolios and contribute constructively to the Toronto Stock Exchange’s interconnected indices.
Technical indicators remain bullish, with Costco sustaining gains above $1,000 and attracting positive market sentiment in both Canada and the U.S. Recent trading sessions marked a five-day winning streak, with the stock consolidating above key moving averages and displaying a persistent bullish trend via its MACD and RSI signals. The stock’s resilience and upward momentum have helped reinforce its status as a high-quality, defensive holding for Canadian institutional and retail investors seeking stability and growth within the consumer staples sector.
FAQ
What is the latest dividend for Costco stock?
Costco currently pays an annual dividend of $4.64 USD per share. The most recent dividend payment was made earlier this year, continuing the company’s track record of regular quarterly distributions. Costco typically maintains a conservative payout policy, prioritizing reinvestment for growth. The dividend yield sits at about 0.52%, reflecting the stock’s price appreciation over time, and Costco has a history of gradually increasing dividends as financial performance improves.
What is the forecast for Costco stock in 2025, 2026, and 2027?
Based on projections from the current price of $999.04, the estimated values for Costco stock are $1,298.75 at the end of 2025, $1,498.56 at the end of 2026, and $1,998.08 at the end of 2027. Costco benefits from robust fundamentals, strong international expansion, rapid e-commerce growth, and consistently high membership renewal rates, supporting an optimistic long-term outlook among analysts.
Should I sell my Costco shares?
Holding onto Costco shares may be a sound approach for patient investors, given the company’s strategic resilience and proven track record. Costco combines stable membership revenues, industry-leading renewal rates, and a history of steady growth. Its ability to adapt to market trends, along with ongoing global expansion and a strong brand, reinforces its favorability for long-term growth. While the current valuation is above sector averages, these qualities often support sustained investor confidence.
Are dividends or gains from Costco stock taxed in Canada, and is it eligible for tax-advantaged accounts?
U.S. stocks like Costco are eligible to be held in Canadian tax-sheltered accounts such as RRSPs (Registered Retirement Savings Plans), where U.S. dividends are typically not subject to the 15% U.S. withholding tax due to the tax treaty between Canada and the U.S. However, if Costco is held in a TFSA or non-registered account, the 15% withholding tax applies to dividends. Capital gains are taxable in Canada, but only 50% of the gain is included in your taxable income.
What is the latest dividend for Costco stock?
Costco currently pays an annual dividend of $4.64 USD per share. The most recent dividend payment was made earlier this year, continuing the company’s track record of regular quarterly distributions. Costco typically maintains a conservative payout policy, prioritizing reinvestment for growth. The dividend yield sits at about 0.52%, reflecting the stock’s price appreciation over time, and Costco has a history of gradually increasing dividends as financial performance improves.
What is the forecast for Costco stock in 2025, 2026, and 2027?
Based on projections from the current price of $999.04, the estimated values for Costco stock are $1,298.75 at the end of 2025, $1,498.56 at the end of 2026, and $1,998.08 at the end of 2027. Costco benefits from robust fundamentals, strong international expansion, rapid e-commerce growth, and consistently high membership renewal rates, supporting an optimistic long-term outlook among analysts.
Should I sell my Costco shares?
Holding onto Costco shares may be a sound approach for patient investors, given the company’s strategic resilience and proven track record. Costco combines stable membership revenues, industry-leading renewal rates, and a history of steady growth. Its ability to adapt to market trends, along with ongoing global expansion and a strong brand, reinforces its favorability for long-term growth. While the current valuation is above sector averages, these qualities often support sustained investor confidence.
Are dividends or gains from Costco stock taxed in Canada, and is it eligible for tax-advantaged accounts?
U.S. stocks like Costco are eligible to be held in Canadian tax-sheltered accounts such as RRSPs (Registered Retirement Savings Plans), where U.S. dividends are typically not subject to the 15% U.S. withholding tax due to the tax treaty between Canada and the U.S. However, if Costco is held in a TFSA or non-registered account, the 15% withholding tax applies to dividends. Capital gains are taxable in Canada, but only 50% of the gain is included in your taxable income.
