Costco Stock Is Exploding — Why Experts Say You’ll Regret Not Buying Now

Costco (NASDAQ: COST) isn’t just a place for bulk paper towels and discounted gas. It’s a retail behemoth quietly shaping itself into one of the most reliable long-term investments in the market.

While inflation has forced many consumers to pull back on discretionary spending, Costco’s unique value model continues to hold up — and in some areas, outperform — amid shifting economic headwinds. As of July 2, 2025, Costco shares are trading at $983.08, inching closer to its 52-week high of $1,078.23, and showing resilience that few competitors in the sector can match.

Despite a high entry point, here are four strong reasons investors are still confident in the long-term potential of Costco stock.

1. Membership Revenue Adds Stability During Market Shocks

Unlike traditional retailers that rely solely on product margins, Costco earns billions annually from its membership program, which brings in steady revenue regardless of sales performance. With over 132 million active cardholders, its renewal rates remain north of 90%, generating consistent cash flow and investor confidence.

Annual membership fees range from $65 to $130, but what members get in return — deep discounts, competitive gas prices, and a strong value perception — is why they stick around even when household budgets tighten.

This model cushions the business during recessions and periods of weak consumer spending — a major differentiator in the current retail landscape.

2. Global Supply Strategy Blunts the Impact of Tariffs

While many retailers are struggling with new or pending tariff costs, Costco has taken aggressive steps to limit the financial burden on both its members and margins. The company is rerouting its supply chains away from high-tariff countries, working with suppliers to share cost increases, and shifting private-label sourcing to more stable regions.

This isn’t just about operational efficiency — it’s a deliberate strategy to maintain price competitiveness while shielding its core customers from excessive price hikes. And in a high-inflation environment, that builds trust — and repeat visits.

3. Profit Growth Beyond Retail Sales

Costco’s profitability story is far more than just strong sales. The company continues to expand into new markets, both in the U.S. and internationally, with new store openings almost quarterly.

While many traditional retailers are struggling with excess inventory and declining in-store traffic, Costco has seen consistent foot traffic growth, particularly in food, gas, and private-label staples.

The company also makes strategic use of its own-brand, Kirkland Signature, which boosts profit margins while offering customers more value — a win-win that scales with volume.

4. Proven Resilience in Market Volatility

Costco stock has had its share of corrections — including temporary dips post-pandemic — but it continues to demonstrate predictable upward momentum. Its long-term trajectory is marked by operational discipline, conservative financial management, and laser focus on customer retention.

Unlike speculative tech or meme stocks, Costco is a durability play — the kind of stock that investors look to hold for 10+ years. It’s not about overnight gains; it’s about long-term capital preservation and growth.

Why It’s Still a Buy

Costco isn’t flashy — it doesn’t chase short-term trends or overextend. Instead, it sticks to fundamentals: strong operations, loyal customers, responsible expansion, and value-first pricing.

In a market where many retailers are shrinking store counts or struggling with debt, Costco is opening new locations, growing memberships, and raising margins — all at once.

So yes, $983.08 per share isn’t cheap. But as an investment, Costco is priced on the strength of its consistency, and that may be exactly what investors need in an uncertain market.

Also Read: 2 High-Yield Dividend Stocks to Buy in July 2025