Costco stock forecast 2025 based on consumer spending trend

Based on consumer spending trend analysis, Costco stock forecast 2025 assumes stable revenue growth even in slower macro cycles, as bulk purchasing behavior offers households inflation resilience. Sekera: Yeah, this is one we have not talked about before. I mean, the stock has been screaming this year. It’s up 83% year to date, but even after that return, it’s still a 4-star-rated stock at a 13% discount to fair value. Now this is something we rate with a high uncertainty being a biotech company, but we do assign this one a narrow economic moat. Costco’s valuation rests on consistent performance. Over the past three years, top-line growth averaged 7.3% annually. In the last twelve months, revenues rose 8.1% to $275 billion. Operating income totaled around $10 billion, with an operating margin of 3.8%, and a cash flow margin of 4.6%, generating nearly $12 billion in operating cash flow. Net income reached $8 billion, yielding a net margin of 2.9%, demonstrating Costco’s ability to convert growth into profitability. Portfolio managers see Costco stock forecast 2025 as a safe haven trade within the retail sector, due to its consistent cash flow generation and predictable operational metrics.