Investors who bought stocks during the COVID-19 market crash in 2020 have generally experienced some big gains in the past two and a half years. But there is no question some big-name stocks performed better than others since the pandemic bottom.Costco's Bumpy Ride: One company that has been an impressive investment in the past two and a half years has been membership-only retailer Costco Wholesale Corporation COST.Related Link: If You Invested $1,000 In Invesco Mortgage Capital (IVR) Stock At Its COVID-19 Pandemic Low, Here's How Much You'd Have NowCostco has generated industry-leading growth and market-beating returns for years and recent quarters have been no different. Its membership-based, low-cost model makes it difficult for companies to compete with Costco's value and its membership fees are also a primary source of high-margin revenue for the company.Costco may not be the most exciting company or stock in the market, but its stellar business model has been a consistent source of returns for long-term investors.While many other retailers struggled to gain back their pre-COVID-19 pandemic business, Costco's business is booming, including 8.1% revenue growth and 6.6% same-store sales growth in the fiscal first quarter.
Online sales were down 3.7% in the quarter.Related Link: If You Invested $1,000 In Intel (INTC) Stock At Its COVID-19 Pandemic Low, Here's How Much You'd Have Now At the beginning of 2020, Costco shares were trading at $294.06, but they dropped to their low point of the year on Feb. 28, 2020. The stock dropped all the way down to $271.28 in intraday trading as news of the coronavirus spreading in China prompted concerns about a U.S. pandemic.When the market bounced off pandemic lows, Costco began to rebound as well.
The stock returned to its pre-pandemic highs of around $325 by July and broke out to new highs in early August, eventually reaching a 2020 high of $393.15 in November.Costco In 2021, 2022, Beyond: Costco stock pulled back to as low as $307 in March 2021 before regaining its bullish momentum. The stock hit $400 in July and $500 in November 2021.Costco's momentum continued in early 2022, and the stock hit the $600 level for the first time in April. Costco reached its post-pandemic high of $612.27 shortly thereafter before pulling back to around $462 today amid broad market weakness.Related Link: If You Invested $1,000 In Invesco Mortgage Capital (IVR) Stock At Its COVID-19 Pandemic Low, Here's How Much You'd Have Now Still, investors who bought Costco on the day it hit its 2020 pandemic low and held on have generated a positive return on their investment.
In fact, $1,000 in Costco stock bought on Feb. 28, 2020, would be worth about $1,723 today, assuming reinvested dividends.Looking ahead, analysts are expecting Costco's stock to rebound in the next 12 months. The average price target among the 30 analysts covering the stock is $545, suggesting 17.8% upside from current levels.Photo: Cris Canton via Shutterstock