If You Invested $1,000 In Costco Stock One Year Ago, Here's How Much You'd Have Now

Investors who have owned stocks in the past year have generally experienced some big gains. In fact, the SPDR S&P 500 ETF Trust SPY total return over the past 12 months is 16.3%. But there is no question some big-name stocks performed better than others along the way.

Costco's Big Year: One company that has been a strong investment in the past year has been membership-only retailer Costco Wholesale Corporation COST.

Costco has generated industry-leading growth and market-beating returns for years now, and recent quarters have been no different. Its membership-based, low-cost model makes it difficult for companies to compete with Costco's value and Costco's membership fees are also a primary source of high-margin revenue for the company.

Costco may not be the most exciting company or stock in the market, but its stellar business model has been a consistent source of returns for long-term investors. Costco currently has more than 113.1 million cardholders covering 62.5 million households.

While many other retailers are struggling to gain back their pre-COVID-19 pandemic business, Costco’s business is booming, including 16.6% revenue growth, 15% same-store sales growth and 14.3% online sales growth in the fiscal first quarter.

Unfortunately, Costco's stock has performed so well in recent years that it has gotten a bit pricey for a retailer, trading at nearly 37 times forward earnings.

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At the beginning of 2020, Costco shares were trading at $294.06. By the beginning of March, the stock was still trading around $294 as news of the coronavirus spreading in China prompted concerns about a U.S. pandemic.

When the market crashed during the U.S. COVID-19 outbreak in March, Costco shares dropped as low as $271.20 during the height of the pandemic fears.

When the market bounced off pandemic lows, Costco began to rebound as well. The stock returned to its pre-pandemic highs of around $325 by July and broke out to new highs in early August, eventually reaching a 2020 high of $393.15 in November.

Costco In 2021, 2022, Beyond: Costco stock pulled back to as low as $307 in March 2021 before regaining its bullish momentum. The stock hit $400 in July, $500 in November and an all-time high of $571.49 in December. Today, shares are hovering around $519.

Costco investors who bought one year ago and held on hoping for a big 2021 performance have generated an impressive return on their investment at this point. In fact, $1,000 in Costco stock bought on March 1, 2021, would be worth about $1,580 today, assuming reinvested dividends.

Looking Ahead: Analysts are expecting more gains from Costco in the next 12 months. The average price target among the 28 analysts covering the stock is $567.50, suggesting a 8.9% upside from current levels.