1 Growth Stock Down 10% to Buy Right Now

2 hours ago 3

Chris Neiger, The Motley Fool

Thu, December 25, 2025 astatine 11:20 AM CST 4 min read

Some investors are overly acrophobic that Costco's renewal rates person somewhat slowed.
But the institution is increasing income and earnings, and North American rank renewal rates are inactive astatine a precise precocious 92%.
With Costco inactive connected way for much growth, the latest stock terms pullback has created a buying opportunity.
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Costco (NASDAQ: COST) has been a favourite banal among galore investors for years, but implicit the past 12 months, the wholesale retailer's shares person declined 10%. Part of the crushed for the driblet whitethorn beryllium fueled by investors reallocating their wealth to much high-growth areas of the market, specified arsenic artificial quality stocks, portion others are disquieted astir Costco's slipping renewal rates.

What's happening with Costco banal close now, and is the latest stock terms pullback a bully buying opportunity? Here's what you should know.

Some investors person been acrophobic lately that Costco's maturation hasn't been arsenic awesome arsenic successful the past, and the company's (still fantastic) renewal rates for immoderate members are slowing down much than they person traditionally.

For example, 1 expert astatine Roth Capital precocious stated that Costco's rank sign-ups successful the astir caller 4th were lone 400,000, compared to a emblematic rank sign-up of 1 million.

Costco's absorption said connected the archetypal 4th net telephone that portion rank sign-ups were lower, this was mostly owed to younger Costco shoppers who motion up for memberships online and thin to renew astatine a slower pace. That could persist for a fewer much quarters, according to Chief Financial Officer Gary Millerchip:

"Our extremity is to proceed to amended renewal rates by improving engagement with members who signed up digitally. Although for the reasons antecedently shared, we whitethorn inactive spot a flimsy diminution successful the wide renewal complaint implicit the adjacent fewer quarters."

It's worthy noting a fewer cardinal facts from Costco's archetypal 4th arsenic a reminder of conscionable however beardown the company's show was, contempt the stock's underperformance. Here are immoderate of the highlights:

Costco reported net per stock of $4.50, outpacing Wall Street's statement estimation of $4.27.
Revenue accrued 8% to $67.3 billion, besides beating the analyst's statement estimation of $67.1 billion.
Comparable income accrued 5.9% successful the U.S. and 6.4% overall.
Costco's Black Friday income acceptable a grounds of implicit $250 cardinal successful non-food orders.