Prediction: Costco Stock Will Underperform the S&P 500 Over the Next 5 Years

One of the best-performing stocks in recent memory could not be further from the tech sector or the ongoing artificial intelligence (AI) boom. I’m talking about Costco (NASDAQ: COST). Shares of the warehouse-club operator have produced a total return of 233% in the past five years, outpacing the S&P 500 by 96%.

While the retail stock has continued its momentum throughout 2024, I’m not bullish as we look ahead. I predict that Costco will underperform the S&P 500 over the next five years.

First, it’s important to set the tone. Costco is a very fine business and has many positive attributes that investors appreciate.

Continue reading