For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Costco (COST) ten years ago? It may not have been easy to hold on to COST for all that time, but if you did, how much would your investment be worth today?
Costco's Business In-Depth
With that in mind, let's take a look at Costco's main business drivers.
Based in Issaquah, WA, Costco Wholesale Corporation sells high volumes of food and general merchandise (including household products and appliances) at discounted prices through membership warehouses. It is one of the largest warehouse club operators in the United States. The company also operates e-commerce sites in the United States, Canada, the U.K., Mexico, Korea, Taiwan, Japan, Australia and China.
Costco operates on the concept that offering members low prices on a limited selection of nationally branded and private-label products can drive high sales volumes and rapid inventory turnover. The approach is supported by volume purchasing and efficient distribution in a no-frills, self-service warehouse format.
The company’s warehouses offer an array of low-priced nationally branded and select private-labeled products in a wide range of merchandise categories. Costco offers three types of memberships to its customers: Business, Gold Star (individual) and Executive.
As of July 8, 2026, Costco operates 933 warehouses worldwide, including 641 locations in the United States and Puerto Rico, 115 in Canada, 43 in Mexico, 37 in Japan, 29 in the United Kingdom, 20 in Korea, 15 in Australia, 14 in Taiwan, seven in China, five in Spain, three in France, two in Sweden, and one each in Iceland and New Zealand.
Costco generates revenues from two sources: Store sales (net sales; 98% of the fiscal 2025 total revenues) and Membership fees (MFI; 2% of the fiscal 2025 total revenues).
Costco offers a myriad of food products, as well as a vast range of household and lifestyle products, stationery and appliances. The company also sells gasoline to customers at low prices. It offers merchandise in the following categories:
Food and Sundries (like dry foods, packaged foods, groceries, snack foods, candy, alcoholic and non-alcoholic beverages, and cleaning supplies)
Hardlines (including major appliances, electronics, health and beauty aids, hardware, and garden and patio)
Fresh Foods (such as meat, produce, deli and bakery)
Softlines (like apparel and small appliances)
Ancillary (including gasoline and pharmacy businesses).
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Costco a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in July 2016 would be worth $5,824.84, or a gain of 482.48%, as of July 30, 2026, and this return excludes dividends but includes price increases.
In comparison, the S&P 500's gained 236.59% and the price of gold went up 187.70% over the same time frame.
Analysts are forecasting more upside for COST too.
Costco remains well-positioned due to its differentiated membership-based warehouse model, strong value proposition and loyal customer base. It continues to benefit from recurring membership income, high renewal rates and growing engagement from higher-value members. Its focus on offering quality merchandise at competitive prices supports steady traffic and reinforces customer loyalty. Costco is also enhancing its digital ecosystem through e-commerce, personalization tools, AI-driven product discovery and convenient fulfillment options, helping improve the member experience. Also, the company is expanding its warehouse footprint and investing in productivity-enhancing initiatives to support long-term growth. Backed by a strong balance sheet, Costco is well-positioned to strengthen its market leadership and drive sustainable growth over time.
Shares have gained 5.34% over the past four weeks and there have been 3 higher earnings estimate revisions for fiscal 2026 compared to none lower. The consensus estimate has moved up as well.
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Costco Wholesale Corporation (COST): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).