Better Buy: Costco vs. Nike
Costco Wholesale (NASDAQ: COST) and Nike (NYSE: NKE) are two consumer goods heavyweights that have delivered incredible shareholder wealth over many years. They both have extraordinary brand power and generate high consumer loyalty. If you're looking to invest in a top blue-chip stock, which one of these is the better buy today? Let's take a look.
Costco has had an impressive run over the past two years, and its higher-than-usual growth is finally beginning to slow down. But that changes nothing about the inherent business model and value that Costco offers, which is what makes it such a compelling candidate as a stock to own.
Costco is the leader in warehouse-style superstores but only third in U.S. retail according to sales, behind the two largest companies in the U.S., Walmart and Amazon. Costco's formula is simple but powerful: offer the lowest prices through the lowest markups, achieve consumer loyalty, and generate massive sales volume.
Source Fool.com
