Should I Buy Costco Stock in 2025? Complete Guide for the Philippines

What is Costco?

How much is Costco stock?

The price of Costco stock is rising this week. As of now, Costco shares are trading at $1,013.94, up by 0.54% in the last 24 hours, though showing a slight decrease of 1.97% over the past week. Its market capitalization stands at $447.45 billion, with an average 3-month daily trading volume of 2.42 million shares. The stock’s Price/Earnings (P/E) ratio is 58.87, and it offers a dividend yield of 0.52%. With a beta of 0.76, Costco stock demonstrates relatively moderate volatility for investors in the Philippines seeking stability within global markets.

Our full analysis on Costco stock

Leveraging a comprehensive review of Costco’s latest financial results and rigorous analysis of its three-year stock performance, our study synthesizes a broad spectrum of indicators—including technical signals, financial metrics, peer benchmarking, and real-time market data—filtered through proprietary modeling. The insights reveal a robust set of structural strengths and positive momentum, even as the stock trades near all-time highs. So, why might Costco stock once again become a strategic entry point into the global consumer staples sector in 2025?

Recent Performance and Market Context

Costco (NASDAQ: COST) has sustained an impressive upwards trajectory, closing at $1,013.94 as of 27 May 2025—an annual gain of 25.22% and up 5.48% over the past six months despite some recent market consolidation. The intraday increase (+0.54%) signals continued underlying demand from both institutional and retail players. Notably, Costco’s performance has outpaced many consumer defensive peers and the broader NASDAQ, supported by renewed optimism following its Q1 FY2025 earnings and plans for further international expansion.

Key recent positives include:

• Solid Top-line Growth: Q1 revenues soared to $60.99 billion (+7.5% YoY), with comparable US sales up 5.2% and FX-adjusted comp sales up 7.1%.
• E-commerce Momentum: Online sales accelerated by 13%, reinforcing digital transformation strengths.
• Membership Model Resilience: Membership-fee revenue—the backbone of Costco’s predictable cash flows—grew at a steady clip as renewal rates held firm globally.
• Selective Market Expansion: The addition of new warehouses in underpenetrated regions further enhances Costco’s international growth optionality.

The macroeconomic environment remains supportive: consumer demand for value and bulk purchasing remains robust amid global cost sensitivities. For Philippine investors, Costco’s defensive business model and US-dollar denominated cash flows provide a natural hedge in portfolios, especially given the local market’s consumer orientation and elevated currency volatility.

Technical Analysis

From a technical standpoint, Costco’s long-term uptrend is pronounced. The price currently sits above all major long-term moving averages:

• 50 DMA: $970.22
• 100 DMA: $977.93
• 200 DMA: $944.12

Such alignment is a classic hallmark of sustained bullish structure. The 20-day moving average ($1,009.33) recently bubbled below spot price, indicating a minor pullback and presenting a potentially attractive tactical entry near $1,000.

Indicators are constructive:

• RSI (14 days): 52.80—neutral, suggesting limited risk of immediate overbought reversal and readiness for a new leg up.
• MACD (12,26,9): Positive crossover at 12.37, a classic buy signal with momentum on the side of buyers.
• Key Support: $997.25 (closely held in recent sessions)
• Key Resistance: $1,035.00

Volume trends remain robust, with multiple sessions of above-average turnover observed on upward price days—often a sign of institutional repositioning. The current consolidation near support suggests the stock is coiling, awaiting the next catalyst possibly from the upcoming Q3 earnings release on 29 May 2025.

Fundamental Analysis

Costco’s fundamentals continue to justify renewed interest from forward-looking investors:

Revenue and Profitability

• Revenue: $60.99B for Q1 FY2025 (+7.5% YoY); consensus expects 7% annual growth for both 2025 and 2026.
• Net Income: Q1 profit stands at $1.798B, reflecting efficient cost management and strong margins despite a slightly softer earnings-per-share ($4.04 vs $4.09 estimate).

Valuation

• Price/Earnings (P/E): 58.87—elevated relative to historical averages, but justified by Costco’s proven track record of compounding growth, unmatched brand equity, and premium defensive profile.
• Price/Sales, PEG: Remain attractive when adjusted for double-digit membership cash flow growth and international expansion potential.
• Market Cap: $447.45B, placing Costco firmly among the global megacap leaders in consumer staples.

Strategic and Structural Strengths

• Dominant Market Position: Operating 897 warehouses across 14 countries, Costco leverages its tremendous scale, buying power, and logistics edge to undercut competitors.
• Membership Model: The company’s unique recurring-revenue subscription framework (membership fees) delivers resilience, earning visibility, and impressive consumer loyalty.
• Brand Equity & Innovation: Costco’s global brand is synonymous with value and quality. The company’s digital strategies, ongoing omnichannel investments, and private-label Kirkland products continue to drive differentiation.

With structural advantages unmatched in the space, Costco’s runway for growth remains compelling.

Volume and Liquidity

• Average Volume: 2.42 million shares traded daily (3-month average), indicating deep liquidity and efficient price discovery.
• Market Cap and Float: With 443.68 million shares outstanding, Costco’s megacap status ensures inclusion in major indices, facilitating both sovereign wealth and global ETF flows.
• Low Beta: At just 0.76, Costco exhibits moderate volatility, serving as a portfolio ballast—an attractive trait for Philippine investors seeking USD-diversified exposure without excessive risk.

High trading volume and liquidity reinforce sustained investor confidence, reducing bid/ask spreads and making the stock accessible for tactical and strategic allocations alike.

Catalysts and Positive Outlook

• International Expansion: Ongoing rollout of new warehouse locations (including in high-growth Asian markets) signals runway for further top-line acceleration.
• Digital Transformation: The sharp uptick in e-commerce sales (+13% YoY) should enable margin expansion as digital penetration increases.
• Recurring Revenue and Membership Fee Hikes: Potential for incremental membership price adjustments, historically well-tolerated by consumers, could unlock further EBIT growth.
• Upcoming Earnings: Q3 FY2025 results (due 29 May 2025) serve as a near-term catalyst; positive surprises could trigger a breakout above resistance.
• ESG and Sustainability: Continued investment in supply chain sustainability, energy efficiency, and employee well-being strengthens Costco’s appeal to institutional investors and aligns with rising global ESG mandates.

Analysts maintain a consensus “Overweight/Buy” rating, with a mean price target of $1,063.31—indicating 4% upside from the current price—while the high target reaches as much as $1,205.

Investment Strategies

There are several compelling arguments for considering Costco under various time horizons, especially as the stock consolidates near technical support and ahead of a major catalyst:

Short-term

• Tactical Positioning: Range-bound price action and neutral RSI suggest entry near $997.25 support could offer attractive risk/reward, particularly if Q3 earnings beat expectations.
• Momentum Play: A decisive close above $1,035.00 resistance could reaccelerate the bullish trend, triggering technical buying.

Medium-term

• Catalyst Anticipation: With technicals supportive and earnings growth steady, positioning ahead of the 29 May earnings release could capture any post-announcement upside.
• Stable Dividend Income: Although yield remains modest (0.52%), consistent dividend increases enhance medium-term total return potential.

Long-term

• Compounding Returns: Membership-led growth, global expansion, and consistent cash generation underpin prospects for durable value creation.
• USD Asset Allocation: For Philippine investors, exposure to a US-dollar megacap in the consumer staples/retail space offers natural geographic and currency diversification.
• Portfolio Core Holding: Resilience through economic cycles, robust liquidity, and proven management combine to make Costco a strong candidate as a long-term anchor position.

Is it the Right Time to Buy Costco?

Costco’s integrated business model—anchored by resilient membership revenues, consistent same-store sales growth, and a unique global brand—seems to represent an excellent opportunity for investors seeking both defensiveness and growth. The current price consolidation, supported by robust fundamentals, highly favorable long-term technicals, and multiple upcoming catalysts, reinforces the view that Costco stock may be about to enter a new bullish phase. With macro trends favoring value-conscious retail, continued international expansion, and accelerating digital initiatives, the upside potential is significant for those looking to enhance their exposure to global consumer defensives with a proven industry leader.

For investors in the Philippines aiming for international diversification and long-term portfolio resilience, Costco’s current positioning aligns well with a balanced, growth-oriented investment strategy. As future catalysts unfold and the company continues its disciplined expansion, Costco offers a rare combination of structural stability and attractive growth potential—attributes that merit serious consideration as a strategic entry in 2025.

In sum, Costco stands out not only as a leader in its field but as a stock where the confluence of market, technical, and fundamental strengths may signal a fresh opportunity for conviction-driven investors seeking exposure to this iconic global retailer.

How to buy Costco stock in the Philippines?

Buying Costco stock online is now straightforward and secure for investors in the Philippines, thanks to the availability of regulated global brokers. You can access real U.S. shares or trade price movements through Contracts for Difference (CFDs), depending on your investment goals. Spot buying means you own the actual Costco shares, while CFDs let you speculate on price changes with leverage, without owning the stock. Both methods are accessible and can be done completely online. To help you get started, we’ve compared the top brokers for Philippine investors further down the page.

Spot buying (Cash Purchase)

A cash purchase means you directly own Costco shares in your brokerage account. This is the most common and "traditional" method of investing, giving you shareholder rights and eligibility for dividends announced by the company. When buying through a Philippine-friendly online broker, expect a fixed commission per order—often around PHP 250–350 (approximately $5–$6).

Important Example

Example: If the Costco share price is $1,013.94 and you invest $1,000 (about PHP 56,200), deducting an estimated $5 broker fee, you can buy nearly 1 full share ($1,000 – $5 = $995; $995 ÷ $1,013.94 ≈ 0.98 shares).
✔️ Gain scenario: If the share price increases by 10%, your holding is now worth about $1,100.
Result: That’s a +$100 gross gain, or +10% on your initial investment.

Trading via CFD

CFDs (Contracts for Difference) are financial products that let you speculate on Costco’s share price without owning the actual stock. CFDs are popular for their flexibility—they allow short selling and use of leverage—but they come with different risks. Rather than a fixed commission, brokers charge a spread (the difference between buy and sell prices) and usually an overnight financing fee if your position is held past market close.

Important Example

Example: With $1,000 (about PHP 56,200), you open a CFD position on Costco using 5x leverage. This means your market exposure is $5,000.
✔️ Gain scenario: If Costco stock rises by 8%, your position gains 8% × 5 = 40%.
Result: That’s a +$400 gain on a $1,000 deposit—before fees are considered.

Final advice

Before buying Costco stock, always compare brokers’ fees, platforms, and available features. Your choice will depend on your objectives: spot buying is ideal for long-term investors wanting real shares, while CFDs suit those seeking flexibility and leverage (with higher risk). For Philippine investors, selecting a well-regulated, cost-effective broker is crucial—you’ll find our detailed broker comparison further down the page to help you make an informed choice.

Our 7 tips for buying Costco stock

The latest news about Costco

Costco stock remains structurally bullish, closing well above key long-term moving averages. The most recent technical data as of 27 May 2025 confirm that Costco shares are trading well above their 50-, 100-, and 200-day moving averages, reflecting a robust and persistent upward trend. The MACD indicator continues to issue a buy signal, while the Relative Strength Index (RSI) stands at a neutral 52.80, suggesting room for further upward movement. These technical signals point to ongoing investor confidence and support the view that the stock may continue its positive momentum, a consideration of interest for Philippine investors observing large-cap defensive international equities.

Costco reported solid Q1 FY2025 results, with 7.5% revenue growth and accelerating e-commerce. In its latest financial disclosure, Costco posted $60.99 billion in revenue for the quarter ending 24 November 2024, marking a 7.5% year-on-year increase. Comparable sales in the US rose 5.2%, and global comparable sales adjusted for currency effects were up 7.1%, with e-commerce showing an impressive 13% growth. Net income stood at $1.798 billion with EPS of $4.04. While slightly under analysts’ consensus projections for EPS, these results highlight continued demand resilience and strong performance in digital channels, a positive for investors from the Philippines given digital adoption trends in the region and exposure to US-listed global retailers.

Costco continues international expansion and currently operates 897 warehouses across 14 countries. The latest company update underscores the strategic drive for international presence, with Costco now operating nearly 900 locations globally, a factor that remains a positive catalyst for long-term growth. This extensive footprint signals Costco’s sustained global ambitions, which is particularly relevant to Philippine stakeholders tracking multinational retailers' market penetration and potential channel relationships, including importation and private label supply opportunities relevant to PH manufacturers or exporters.

Analyst consensus on Costco’s stock is strongly positive, with a new average price target set at $1,063.31. Current analyst sentiment on the stock is “Overweight/Buy,” with a consensus price target implying approximately 4-5% upside from the current price of $1,013.94 as of May 27, 2025. The positive outlook is supported by Costco’s resilient recurring membership revenue model, industry leadership in the warehouse club space, and strong brand recognition. Philippine institutional investors, particularly those seeking defensive growth with stable cash flows, may view this consensus as an endorsement of Costco in cross-border equity portfolios or feeder funds.

Costco’s stock remains accessible to Philippine investors but is subject to the US-PH tax treaty for dividends. The shares, traded on NASDAQ and bearing ISIN US2091151041, are available via global brokerage platforms and increasingly through PH-based brokerages offering US equity access. However, Philippine residents should note that dividend income from Costco will be subject to the standard 30% US withholding tax for non-resident aliens, potentially reduced if claimed under the US-Philippines tax treaty. This is a practical consideration for fund selectors and retail investors alike, as fiscal implications can affect total return calculations when allocating to US-listed consumer defense names.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.