Costco Stock Rises 1.31% on 52.6% Volume Jump to 40th in Liquidity Outperforming Retail Sector as Zacks Projects 11.4% EPS Growth

On July 31, 2025, Costco Wholesale Corporation (COST) closed 1.31% higher, with a trading volume of $2.41 billion, a 52.59% increase from the prior day, ranking 40th in market liquidity. The stock has outperformed the Zacks Retail - Discount Stores industry over the past year, driven by strategic investments, a customer-centric approach, and membership growth. Analysts highlight Costco’s ability to navigate economic challenges through strong sales, high renewal rates, and a favorable product mix. A Zacks report projects 11.4% adjusted EPS growth and 7.8% revenue growth for fiscal 2025, supported by steady store traffic and pricing power. While trading at a premium to peers, the company’s long-term growth prospects and robust liquidity position are seen as key drivers of continued outperformance.

Recent developments underscore Costco’s resilience. The retailer’s membership model and disciplined cost management have bolstered its margins, even as broader consumer spending remains cautious. Analysts note that Costco’s focus on high-demand categories and strategic store expansions contribute to its competitive edge. Additionally, its strong balance sheet and ability to maintain low prices in a high-inflation environment position it to retain market share. Despite macroeconomic uncertainties, the company’s consistent performance and reinvestment in digital and omnichannel initiatives are expected to sustain momentum.

The backtest results of a strategy purchasing the top 500 stocks by daily trading volume and holding for one day delivered a 166.71% return from 2022 to July 30, 2025, significantly outperforming the benchmark’s 29.18% return. This approach achieved an excess return of 137.53%, demonstrating the efficacy of capitalizing on high-liquidity assets during momentum-driven market shifts. Costco’s inclusion in such a high-volume cohort highlights its role as a liquidity magnet, reflecting strong investor confidence and operational strength.