A Motley Fool columnist says a $10,000 Costco investment could be worth about $17,600 in five years at 12% annual growth, $20,000 at 15% or nearly $25,000 at 20%. The writer cautions that 15% may be a stretch and 20% or more shouldn’t be assumed.
Morningstar data cited in the article show Costco shares averaged annual returns of 15.77% over five years and 17.93% over 15 years through Sept. 23, 2026. A $10,000 investment made five years earlier would have grown to nearly $21,000, compared with the S&P 500’s 12.6% average annual gain over the same period.
Costco’s latest reported fourth-quarter revenue grew 11.2% year over year and diluted earnings per share rose 15%. The columnist says the membership-fee model and dividend support the stock, but considers its recently reported forward price-to-earnings ratio of 40 steep.
