🚀 Costco Stock (COST): The Bullish Signal No Investor Can Ignore in 2025

Costco's stock is flashing a rare buy signal—while retail investors scramble for meme coins.

The Membership Mojo: COST's recurring revenue model makes DeFi yield farms look like amateur hour. Those $60 annual fees? Pure protocol-level cash flow.

Warehouse-Sized Advantage: While crypto exchanges fight over 0.1% fee margins, Costco operates at wholesale scale—literally. Their 2% profit margin would make any CEX weep.

Tokenomics Done Right: No inflationary token emissions here—just pallets of discounted rotisserie chickens fueling real-world adoption.

Funny how a company selling toilet paper in bulk outpaces most 'disruptive' fintech plays. Maybe Web3 could learn from a business that actually turns a profit.

Image source: Getty Images.

Costco is an appealing stock for lots of reasons, a key one being its membership model. You need to be a member to shop there, and memberships start at $65 per year. That alone delivered close to $5 billion in revenue for Costco in 2024 -- and it made up the bulk of profits, too.

The company also has a strong private-label brand in Kirkland, which generates greater profits than name-brand items in general.

So, what's the red flag? Well, it's Costco's valuation, which seems on the steep side. Its recent forward-looking price-to-earnings (P/E) ratio of 46 is above its five-year average of 40, and its recent price-to-sales ratio of 1.56 is above the five-year average of 1.12. Buying into the company today WOULD leave you with little or no margin of safety. And safety would be welcome these days, with so much economic uncertainty, due to tariffs, for example.

Costco often trades at a lofty valuation, though, because it has performed so well. So, if you're afraid you may never see a much more attractive price, you might just buy some shares for your long-term portfolio, but perhaps not a boatload. You might build a position in the stock incrementally over time.