Thanks to a larger store footprint, Costco (NASDAQ: COST) has grown its revenue and earnings at healthy rates over the years. Unsurprisingly, this has resulted in strong stock returns. Last year, the business saw its shares rise 45%, outpacing the Nasdaq Composite Index.

Can the momentum continue for this top retail stock to increase by 44% (from the price on Jan. 29) and hit $1,000 by the end of 2024? Here are the factors that investors should focus on.

Costco is a unique retailer because it sells memberships to consumers for the right to shop at one of its 873 warehouses. There are 129.5 million member cardholders who all pay annual fees, which translates to a stable source of high-margin revenue. In fact, in fiscal 2023 (ended Sept. 3), 73% of Costco's net income was accounted for by membership fees.

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Source Fool.com