Costco Poised to Overtake Home Depot and Lowe's Combined Value by 2030
Costco Wholesale has been on an absolute tear over the last five years, its stock jumping by more than 100% due to growing popularity and a booming membership model.
The company's business model is based on customers paying for memberships before buying anything, creating a robust recurring revenue stream.
As of August 31st, Home Depot and Lowe's had a combined market cap of $442 billion. Costco was worth around $417 billion in July and August, making it only about $25 billion away from surpassing the combined market value of these two companies.
The math suggests that even a modest growth rate of 6% per year would put Costco at around $526 billion by 2030, while Home Depot and Lowe's combined market value would reach around $517 billion if they grow at 4% annually.