Should You Buy Costco Stock

Should You Buy Costco Stock by Adam Rosen last updated on October 19, 2025

Should You Buy Costco Stock In 2025?

Costco Wholesale (COST) is a big name in its sector and also has a massive presence in the USA. So, for anyone who wants exposure to the retail stocks, it's hard to miss Costco.

In the last 10 years, the Costco share price has gone up by 570%. That's a lot more than the 240% return from the S&P 500 during the same period.

Costco Is A Defensive Stock

And Costco managed to give such returns even though it is a defensive stock. This shows that Costco continues to enjoy growth over the years with no signs of slowing down.

Costco has found its customers among people who like to buy in bulk at bargain prices. This strategy has allowed Costco to find customers during both the good and bad times.

So, does this mean you should buy the Costco stock or you should wait? Now, that's a question that requires more investigation.

The business model of Costco is very solid, and their low prices have helped with customer retention. A lot of the company's net income comes from membership cards.

Also, a quick look at the last few years shows that Costco continues to increase its membership base steadily. Meanwhile, Costco is also opening new stores both in the USA and the international market.

But that growth is already priced into the stock price of Costco, as its P/E is already near 54. When we look at other stocks in the same sector, it becomes clear that Costco stock is a little expensive.

So, the bottom line is that Costco is a very good stock to buy for the long term. But given the high P/E ratio, it's better to wait for a better price before taking an entry in Costco stock.

And for those who already have the Costco shares, the best strategy is to hold, as the stock will eventually outperform the market in the long term.