Costco Wholesale (NASDAQ: COST) has been on a winning streak in 2026, with share prices already up by 13% as of March 19. This impressive performance stands out against the backdrop of the S&P 500, which has lost 3.5% of its value during the same period.
This success story is not new for the warehouse-club retailer. Over the past decade, Costco has proven to be a stellar portfolio holding, delivering a total return of 659%. An initial investment of $1,000 in Costco stock 10 years ago would now be worth $7,590. This remarkable growth is a testament to Costco’s stability and predictability in all economic scenarios.
Financially, Costco has also been delivering solid results. Between fiscal 2015 and fiscal 2025, the company saw a 137% increase in net sales and a 241% increase in net income. This consistent growth has made Costco a favorite among investors looking for a safe and reliable investment option.
However, with success comes a price. Costco’s current price-to-earnings ratio of 50.7 is 73% higher than it was a decade ago and well above the 10-year average P/E of 39. While the stock has performed well, it is trading at a premium that may not be favorable for new investors unless they are in it for the long haul. The market has already priced in a lot of growth potential for Costco stock.
Before jumping on the Costco bandwagon, investors should consider other opportunities. The Motley Fool Stock Advisor analyst team recently identified the 10 best stocks for investors to buy now, and Costco Wholesale did not make the cut. These selected stocks have the potential to deliver significant returns in the years to come, much like Netflix and Nvidia did after being recommended by the team in the past.
It’s essential to note that Stock Advisor’s total average return is an impressive 898%, significantly outperforming the S&P 500’s return of 183%. By staying informed and joining an investing community like Stock Advisor, individual investors can access valuable insights and recommendations to make informed decisions in the market.
