4 Reasons You Should Invest in Costco Stock

JayleenDigital Marketing2025-07-088760

It doesn’t get any bigger, or more appropriately bulkier, than the multinational retail corporation Costco. In general, retail performance over the past year has been influenced by consumers changing spending patterns amid inflation spikes, but ultimately, Costco stores consistently improve foot traffic.

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Even with shoppers restricting their spending on discretionary items in-store and online and the company currently riding out a bumpy patch, this might be an opportune time to invest long-term in Costco. Costco stock is persistent because the company is always building more stores and expanding into more markets.

Here are some key takeaways of Costco stock:

The current share price as of July 2, 2025, is $983.08, which isn’t cheap but may be worth the upfront investment as there is proven consistent growth.
Its current market cap is approximately $435 billion, and it has a 52-week high of $1,078.23 and a 52-week low of $793.
Costco is a membership-based club retailer, and the cost of memberships ranges between $65 to $130 annually.
Buying in bulk and saving money on groceries isn’t going out of style, so Costco’s profits can continuously increase and will likely maintain this progress in the future.

Here are four reasons why you should consider investing in Costco.

Costco vs. Tariffs

With all the newly implemented or pending tariffs, consumers are worried about just how high their grocery bills will go. However, Costco, a store that is notorious for putting the customer before board members, is actively working to mitigate the impact of tariffs on its business and members by implementing several strategies. Though this may seem counterintuitive when it comes to investing, keeping or even growing a loyal customer base is better for company growth in the long run.

Currently, the mega warehouse retailer is rerouting imported goods from countries facing tariffs to other markets, negotiating with suppliers to absorb some of the cost increases and shifting private-label sourcing to sales regions. Costco shoppers can also benefit from the store’s plans to leverage its global buying power and strong supplier relationships to minimize price increases for its valued members.

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The Profit Is Reliable

Costco’s numbers just don’t go up with sales revenue, but also through membership fees. It shapes its shopping experience to current consumer trends, and though most of its inventory is still in bulk packaging, there are also several consumer-friendly sized items at a discount. This can make it a one-stop shop for many customers.

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This mega-retailer knows its way around a profit margin, as it has consistently gone up. Though there is no such thing as a guarantee when it comes to the stock market, consistency can be synonymous with a safe bet.

It’s Consistent With Forward Progress

It may not be lightning in a bottle, but Costco stock has proven its forward momentum, even if it’s slow and steady. This is not to say that the stock can’t have a setback or ups and downs. In fact, there were several dips shortly after the pandemic, but ultimately it leveled out and moved up steadily. Costco shares are something to consider for long-term investors.

It’s Compatible With Consumer Shopping Habits

Costco offers real value, and the customers seem to both know it and appreciate it. This is why over 132 million cardholders and 74 million household members don’t mind paying a membership fee as the retailer aligns with how they want to shop. Any place where you can shave money off your grocery bill or to-do list, and do so in bulk, is going to be a popular one.

Costco knows its cost-conscious demographic are shoppers that will put their money where their mouths are, so it needs to make sure to appease their bottom line. Costco adapts to shopping trends so savvy consumers can access data and technology to find the best possible deal across Costco’s inventory and other competitors.

Final Take To GO: Investing in Costco Stock Long-Term

The bottom line is that it’s hard to be an optimistic investor amid market instability, sell-offs and Fed hikes, but being the third-biggest retailer in the world (behind Walmart and Amazon), Costco can absorb market impacts and tolerate dips better than most companies and will continue to win market share — as it has done for decades — through economic peaks and valleys.

Much like spending $1.50 on its famous hot dog, Costco is a good bet for your buck. It’s durable and will remain resilient in both bear and bull markets in the long term.

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