Costco’s Earnings Climb Hits the Overpriced Ceiling

Costco: The Money‑Making Marvel Of The Retail World

Back in 2010, Costco decided to start a trend: earnings per share (EPS) climbed every single year. If you’re a numbers junkie, that’s the kind of consistency that makes investors grin like kids on Christmas morning.

Why The Numbers Are So Good

Average EPS growth over the past decade? A staggering 13.7% per year.
Contrast that with the S&P 500 median of only 8.6%.
In plain speak, Costco grew about 59% faster per year than a typical S&P stock.

The Investor Verdict

Tradequotex.com analyst Cory Mitchell had to speak up: “Costco is a juggernaut. They’ve kept the money flowing steadily, and the shareholders have reaped the rewards.” He added that a decade‑long investor in Costco earned 3.5× the return of an S&P 500 investor, and experts still predict Costco will keep outpacing most S&P stocks for the next five years.

Is It Worth the Fuss? The P/E Perspective

Right now, the stock’s P/E ratio sits near one of its highest marks in recent memory. “Definitely overpriced,” some say. But if you’re a long‑sighted party animal looking for growth, that high P/E might just be the price of entry to a proven jackpot.

Price Performance: The Numbers Keep Coming

Costco’s annualized return vs. S&P 500 has been a solid 12% per year.
The S&P 500 itself averages 13%. So Costco’s beating the bar by 12% a year— that’s impressive!
All together, Costco delivered a whopping 25% annualized return, totaling 831% over the last decade, dividends included.

Quick Snapshot: Costco vs. SPY in the Last Five Years

On a side chart (not shown here) you’ll see Costco’s upward trajectory far outpacing the SPDR S&P 500 ETF (SPY). The data backs up the narrative: Costco’s strategy of bulk, membership perks, and steady revenue growth has paid dividends—literally and figuratively.

So next time you’re pondering your stock picks, remember Costco isn’t just a warehouse; it’s a profit‑generating powerhouse with a proven track record that’s hard to beat.

Costco’s Earnings Roller‑Coaster: 2023 vs the Past Decade

Hold onto your shopping list – Costco’s profit numbers are on a bite‑size high.

Year‑on‑Year Gains (Bottom‑Line Grab)

2023: +10.9%
“Nice, 2024 just gets warmer!”
2022: +13.8%
2021: +19.4% – the best performance since the pandemic got a little settled.
2020: +15.5%
2019: +14.4%
2018: +17.2%
2017: +14.8%
2016: +2.6% – snail‑speed compared to the rest.
2015: +11%
2014: +3.7%

What “Dropping a Dough” Looked Like

The only real year Costco’s earnings fell was back in 2009, during the flash‑free financial crisis. Even then, the company kept making money – just a little less than in 2008.

Why You Might Peek at the Stock

Costco’s solid track record is great news, but one bedside‑table question—Price/earnings (P/E)—always sticks around. Right now, that number sits around 55 (c. 55.6), the tallest climb it’s seen in a decade.

Is “Lavish” the Word?

With a P/E that roars louder than a thunderstorm, shares feel like a hot‑pot of popcorn: a little pricier, but you’re still in the game. It’s a solid company, so the only caution is whether the price tag is worth the ride.