Costco Just Showed Why It's a Must-Own Stock
Costco Wholesale (NASDAQ: COST) just reported healthy fiscal fourth-quarter results, topping most expectations for its top and bottom lines. But investors aren't thrilled. Shares dropped following the release of its quarterly numbers, weighed down by (legitimate) worries that inflation is even taking a toll on this perennial powerhouse.
This line of thinking, however, ignores three bullish takeaways from the company's quarterly numbers. Costco is still the solid buy it's been for the better part of its stock's history, and this year's sell-off, extended by last week's continued weakness, makes the ticker an even better bet now.
At least part of the recent round of selling stems from Costco's decision regarding its annual membership fee. Some investors want the company to raise fees as a means of combating pressured profit margins, mirroring a recent fee increase imposed by rival club-based retailer Sam's Club, owned by Walmart. Costco, however, has no plans to do so at this point in time.
Source Fool.com
