Early Bird Prime for December 21, 2025

While you might be tempted to stock up on essentials at Costco Wholesale $COST ( ▼ 0.23% ), the same may not be said about buying the company’s stock. This year, the retail giant has declined by 5.96%, while the rest of the market is growing. 

It's nearing a 52-week low, and Roth Capital Partners just downgraded it to "Sell," citing weak metrics and competition. 

Let's take a closer look. A majority of U.S. adults, 55% to be exact, say they'll be spending less on holiday gifts this year. So, if you're hoping for a holiday miracle to boost Costco's sales, you might want to hold off on that eggnog.

But hey, maybe this is a chance to buy a solid company at a discount, right?

Net sales are up 8.2%, with comparable sales up 6.4%. Sales are climbing in the U.S. and even higher in Canada.

And let's not forget the digital realm. Costco's digitally enabled comparable sales are surging fast. Businesses like pharmacy and logistics are growing quickly, broadening revenue streams beyond the core bulk-grocery basket.

Return on equity is around 30%, which is high for a retailer and indicates strong capital efficiency and management discipline. In other words, Costco knows how to make money and keep it rolling in.

Should you buy Costco's stock right now in 2025 before 2026 starts? Here’s the answer…