Where Will Costco Stock Be in 3 Years?
Costco's (NASDAQ: COST) business is a lot more predictable than your average retailer's. That stability springs from two big factors. The first is the chain's massive global sales base that spans both consumer staple products and discretionary purchases like home furnishings. It pays to be the world's second-largest retailer, especially when you can stay busy during boom times as well as through those inevitable downturns.
Costco's membership model also means that most of its earnings flow from charging fees to members rather than product sales. As a result, profits don't swing as much through the ups and downs of the economic cycle.
These factors make it a bit easier to project the retailer's path over the next few years. Let's take a closer look.
Source Fool.com
