Are we betting against Costco (COST)?

September 26, 2024

If you want a master class at providing value to consumers, look no further than Costco (COST).

The bulk retailer is famous for its $1.50 hotdog combo and treasure-hunt-inspired store format...and for investors, its seemingly ever-rising stock.

COST shares are up just over +60% YoY.

Heading into earnings, is the stock ready to surge to new all-time highs?

Here's how we see it...

Costco recently increased annual membership prices from $60 to $65 and $120 to $130 for its Gold Star and Executive memberships respectively -- it's first membership price hike in over 7 years.

While these new membership prices may cause consumers to question whether it’s worth paying for, web data shows searches for membership cancellations are unaffected.

Last quarter, Costco's retention rate in North America was 93% -- impressive.

COST can command a steep price for its membership because its savings are undeniable.

These statistics might suprise you.

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