Costco's $1,000 Breakout: Tariff-Proof Growth and a Buy Signal You Can't Afford to Miss!

Costco's stock took a small hit after its Q3 earnings report, dipping 0.46% in after-hours trading as revenue narrowly missed estimates. But here's the thing: this is the buying opportunity you've been waiting for. The $1,000 resistance level isn't just a number—it's a psychological barrier about to shatter. Let's dissect why Costco (COST) isn't just surviving tariffs but thriving, and why now is the moment to act.

Why Tariffs Won't Stop Costco

The market is fixated on short-term noise, but Costco's strategic supply chain adaptations are a masterclass in risk mitigation. Let's start with the facts:
- EPS soared 13.2% to $4.28, crushing estimates.
- Membership fees jumped 10.4% to $1.24 billion, with renewal rates at 90.2%—proof customers won't abandon this value-driven model.
- E-commerce sales surged 15.7%, driven by big-ticket items like furniture and appliances.

The company isn't just weathering tariffs—it's rewriting the playbook. By sourcing Kirkland Signature products locally (e.g., 40% price cuts on laundry detergent in Asia) and rerouting shipments to avoid U.S. tariff zones, Costco is keeping costs low while maintaining margins. Even the $130M LIFO charge (a one-time hit from nonfood inflation) couldn't derail EPS growth.

The Technical Case for a $1,000 Breakout

Let's talk numbers. Costco's stock has been stuck near $1,000 for months, but this earnings report just lit a fuse under it:
- Revenue growth is still 8% year-over-year, despite headwinds.
- Global comparable sales rose 8% when excluding gasoline and FX—a key metric investors should watch.

The $1,000 level has acted as resistance since late 2023. But with EPS accelerating and a 25.72% one-year total return, the stock is primed to break through. Technical traders know that a sustained close above $1,000 would trigger momentum buying. And with $13.84B in cash, Costco isn't just surviving—it's positioning for dominance.

Valuation: A Hidden Gem at 25x Earnings

Analysts are fixated on the revenue miss, but here's the cold, hard truth: Costco is still dirt-cheap.

At 25x trailing EPS, it's trading at a discount to its five-year average of 28x. Meanwhile, Walmart (WMT) and Target (TGT) are priced at 22x and 23x—but Costco's growth is stronger. Its 33% return on equity crushes peers, and the dividend yield (0.7%) is a bonus for income seekers.

The Elephant in the Room: Expansion and E-Commerce

Costco isn't resting on its laurels. It's opening 27 new warehouses in 2025, including its second in Sweden and more in high-growth markets like Japan and Mexico. E-commerce is the secret sauce: 15.7% growth in a post-pandemic world shows customers are still flocking to the Scan & Go tech and bulk delivery.

And don't overlook the Kirkland Signature boom—its sales penetration grew by 50 basis points, proving private labels are a profit engine. With 79.6M paid households and 9% growth in executive memberships, the flywheel is spinning faster than ever.

The Bottom Line: Buy the Dip Before It's Gone

The earnings “miss” was a gift. Here's why to act now:
1. Technical breakout imminent: $1,000 resistance is fading.
2. Valuation is a steal: 25x earnings with 13% EPS growth? This is a steal.
3. Tariff resilience proven: They're not just surviving—they're innovating.

Don't be fooled by the post-earnings dip. This is a once-in-a-decade opportunity to own a retailer that's unstoppable in good times and bad. The stock could hit $1,200 by year-end—but you won't get this price again.

Final Call: Buy Costco now. The $1,000 ceiling is about to explode, and you don't want to miss the party.