If You Invested $1,000 In Costco (COST) Stock At Its COVID-19 Pandemic Low, Here's How Much You'd Have Now

Investors who bought stocks during the COVID-19 market crash in 2020 have generally experienced some big gains in the past two and a half years. But there is no question some big-name stocks performed better than others since the pandemic bottom.

Costco's Bumpy Ride: One company that has been an impressive investment in the past two and a half years has been membership-only retailer Costco Wholesale Corporation COST.

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Costco has generated industry-leading growth and market-beating returns for years 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 its 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.

While many other retailers struggled to gain back their pre-COVID-19 pandemic business, Costco’s business is booming, including 8.1% revenue growth and 6.6% same-store sales growth in the fiscal first quarter. Online sales were down 3.7% in the quarter.

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At the beginning of 2020, Costco shares were trading at $294.06, but they dropped to their low point of the year on Feb. 28, 2020. The stock dropped all the way down to $271.28 in intraday trading as news of the coronavirus spreading in China prompted concerns about a U.S. pandemic.

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 and $500 in November 2021.

Costco's momentum continued in early 2022, and the stock hit the $600 level for the first time in April. Costco reached its post-pandemic high of $612.27 shortly thereafter before pulling back to around $462 today amid broad market weakness.

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Still, investors who bought Costco on the day it hit its 2020 pandemic low and held on have generated a positive return on their investment. In fact, $1,000 in Costco stock bought on Feb. 28, 2020, would be worth about $1,723 today, assuming reinvested dividends.

Looking ahead, analysts are expecting Costco's stock to rebound in the next 12 months. The average price target among the 30 analysts covering the stock is $545, suggesting 17.8% upside from current levels.

Photo: Cris Canton via Shutterstock