Costco Could Be Poised for Major Gains Before 2030. Here Is Why Now May Be the Time to Buy.
Costco's best growth years may still lie ahead.
Overview
Costco (NASDAQ: COST) has never been a cheap stock. But premium businesses rarely are. The warehouse retailer has spent decades building one of the strongest business models in retail, and several long-term trends suggest it could continue rewarding shareholders well into the next decade.
The biggest advantage for Costco isn't bulk groceries or discounted televisions. It's membership. During fiscal 2025, Costco generated approximately $5.32 billion in membership fee revenue, up 10% from $4.83 billion the prior year. Even more impressive, its U.S. and Canada membership renewal rate clocked in at 92.3%, while its worldwide renewal rate was 89.8%. Those are among the highest retention rates of any subscription-based business and help explain why membership fees remain one of Costco's biggest competitive advantages.
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Originally published at www.fool.com.