Since the end of the year, shares of Costco Wholesale (COST) have worked their way higher.
This week, they hit a rarified level, crossing $1,000 for the first time and joining a tiny number of stocks that are basically retail-oriented.
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There was good reason for the stock to move up. Costco’s business has grown steadily over the years. It produced strong results in the 2024 holiday season as shoppers opted for value and price and ignored higher membership fees.
After Wednesday’s market close, Costco released a bullish report on its January 2025 sales, and a number of analysts raised their ratings and price targets on the stock Thursday morning.
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Costco closed the day at a record price of $1,050.99, up $8.11, or 0.8%.
They had reached an all-time high of $1,063 in mid-morning.
Since Dec. 31, Costco’s stock price is up 14.7% and it has seen gains for seven straight days. Its shares were up 38.9% in 2024.
The January sales report said Costco’s overall sales grew 7.5% to $19.5 billion for the four weeks between Jan. 6 and Feb. 2. Sales at U.S. stores rose 9.3%.
Canadian sales showed a gain of 5.7%, but that number was depressed by the strength of the U.S. dollar. In Canadian dollars, sales were up 12.3%. Sales at stores in other foreign stores were up 1.1% in U.S. dollars and 10.9% in local currencies.
E-commerce sales grew 13.6% in U.S. dollars and 15.2% reflecting local currencies.
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Costco’s January sales buoy confidence
U.S. core sales (excluding gasoline sales) were up 9.85% — a number that Stifel analysts called “meaningfully ahead of consensus.” Stifel raised its target price to $1,075 from $1,000.
“Our view has been and remains that Costco is extremely well positioned as consumers look to extend their shopping dollars, especially as they continue to face elevated prices for food and other items,” wrote Chris Versace, a long-time fund manager who runs the Street Pro portfolio. He raised his Costco target price on the shares to $1,110 from $1,050.
Oppenheimer raised its target to $1,130 from $1,075, noting strong single-digit growth in January sales of food and sundries. Non-food sales were up low-double digits.
“Oppenheimer continues to see Costco’s superior merchandising prowess and value proposition on display in stores and remains bullish on management’s ability to sustain comp momentum and drive share gains for the foreseeable future,” theFly.com noted. Costco remains a top pick for the firm.
Catalysts going forward, in Oppenheimer’s view, include a potential stock split.
One other positive in the company’s favor. It recently achieved a contract settlement with its Teamster drivers without a strike.
Costco’s sales growth has been supported by increasing membership amid stubbornly high inflation.
Justin Sullivan/Getty Images
A worry for investors
Costco’s performance since the end of 2023 is roughly similar to that of Walmart, which was up 71% in 2024 and is up 13.8% so far in 2025.
There is one issue facing the stock, Versace’s note said. It’s not cheap.
Its relative strength index, which measures the stock price against a recent period, is nearly at 80. A level above 70 is a warning sign a stock is getting pricey.
An RSI near 80 or higher is a clear signal that the stock is starting to become vulnerable.
Costco is consistent and tough
Costco is famed for:
Huge warehouse-style stores. Low prices.A host of other services, including pharmacy, gasoline service, a travel business and relationships with auto dealers. It even sells gold.Cheap food at its food courts.Its membership fees.
The company boosted its membership fees on Sept. 1 for the first time since 2017, and membership counts remained almost unchanged.
About 94% of members renew every year. A switch to ask customers to scan their membership cards at store entries has gone smoothly.
About that $1,000 stock price
The stock’s move above $1,000 had been coming for some time. The shares were up 38.8% in 2024 alone, and the momentum has continued this year.
It is just one of five pure retailers with share prices greater than $1,000 among Standard & Poor’s 500 stocks.
The others are:
Homebuilder NVR Inc.Travel company Booking Holdings (BKNG) Auto parts retailers AutoZone (AZO) and O’Reilly Automotive (ORLY)
Netflix (NFLX) is close to being a retailer and also is on the list, selling at about $1,100.
A total of 13 S&P 500 stocks are trading at $1,000 or higher.
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Companies are often reluctant to let share prices get to $1,000. Prices that are high can limit who can invest in stocks to just the most well-heeled or big institutions.
It also precludes membership in the Dow Jones Industrial Average. The index has just 30 stocks and is price-weighted. The bigger the stock price, the more impact price changes can have on the index.
Amazon.com (AMZN) was trading at around $3,700 in 2020. The company split its shares 20-for-1, and Amazon landed in the Dow.
Will Costco’s stock split?
Costco is often mentioned as a candidate for a big stock split, partly because it was thought to be a good candidate for the Dow, and a split would make the shares more affordable for employees.
The company has resisted the calls partly because its employee-stock purchase plan allows the purchase of fractional shares.
Costco has a broad universe of ownership. Some 4,351 institutions own 71.5% of the shares. About 20% of the shares are owned by money-management giants Vanguard, BlackRock (BLK) and State Street Corp. (STT) .
Costco now operates 897 stores, including 617 in the United States, 109 in Canada, 41 in Mexico, and 29 in the United Kingdom.
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