Prediction: Costco Will Beat the S&P 500 Again
Costco's membership model and consistent growth make it a strong investment candidate, but its high valuation leaves little room for disappointment.
Overview
Costco Wholesale (NASDAQ: COST) has spent decades outpacing the market. Even after its big run in 2023 and 2024, I think it is still on track to beat the S&P 500 over the next year and remains a solid buy for patient investors. The ticker has outperformed the S&P 500 in 16 out of the 25 years between 2000 and 2025, giving it a historical win rate of 64% over that 25-year span.
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Over longer stretches, the record speaks for itself. Over the past five years, Costco has delivered a total return of about 124% versus roughly 75% for the S&P 500. Over three years, it has beaten the index again with a 76% gain, versus about 75% for the benchmark.
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Source
Originally published at www.fool.com.