Is it Time to Bulk Up on Costco (COST) Shares?

Costco Wholesale Corp (NASDAQ: COST) is a study in contrasts.

On the one hand, COST is viewed as a great dividend stock that could drive great growth to a portfolio. In a time of instability and economic uncertainty, investors and analysts generally consider Costco a safer bet for long-term investing in retail, given how it sells necessities at lower prices than competitors.

This POV is supported by the price action — the stock price increased 36.49% over the last year.

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On the other hand, 18,000 Costco Workers are set to strike starting January 31st. Should investors freak?

At WallStreetZen, we like to look at the long view for investing. While there are times to sell based on negative catalysts, in the case of COST, we don’t see any major signs of concern. Here are some additional reasons to be more hopeful.

• While the strike might be an issue, 18,000 workers still only represent 8% of their workforce. It is unlikely to shutter stores. And there is still time for the dispute to be resolved without a strike.
• Costco now has 77 million members and even more members if you include non-paying ones. It is a significant part of tens of millions of regularly paying households.
• It has a Zen Rating of B. While it scores below average in our Value component grade, COST more than makes up for this with its Momentum, Sentiment, Safety, and Financials grades. The price might not be the best value now, but COST is on a great track, and it’s a steady ship in an economic storm.

What should investors do? For most, it means that they should look beyond initial stories and reports that might affect prices in the short term. Based on our Zen Ratings system, analyst inputs, and the larger economic trends at play, COST is something that you need to take a long view on, whether you think it’s the best option for your portfolio or not.

To recap, here are some reasons to consider watching COST: 

• It has a Zen Rating of B and strong component grades. 
• While the incoming strike might be concerning to investors, COST is still on a strong trajectory in this economy, regardless of how the strike is resolved.
• It had strong Q1 2025 earnings, beating estimates.

To help you learn more about COST and other stocks, we strongly recommend signing up for WallStreetZen Premium. With it, you’ll have access to fundamental data, analyst opinions, and an unlimited watchlist so you can keep track of the vital news stories and stock price changes that relate to your portfolio. It’s a tool that will save you time, help you make better decisions, and give you more peace of mind.

Want to get in touch? Email us at news@wallstreetzen.com.