Why Costco Stock Could Pop Tomorrow
With all the distressing signals about the state of the economy, you might think that now's not a good time to invest in the stock market. But that would be a mistake, because, as is the case in many areas of life, challenges often represent the greatest opportunities.
Sometimes those opportunities lie in the tanked stocks themselves. Target (NYSE: TGT) stock is down 32.6% this year after missing on first-quarter earnings and presenting a bleak near-term outlook. But at the current price, shares trade at only 12 times trailing 12-month earnings, and its long-term potential is huge.
Other opportunities might be in stocks that are swimming against the tide and posting healthy growth in an otherwise murky atmosphere. Costco Wholesale (NASDAQ: COST) might fall into that category. Its stock price has fallen along with the market this year, and last week it plunged after other retailers posted disappointing first-quarter results. Shares are now trading at 35 times trailing 12-month earnings, after falling 23% year to date. But shares could rise tomorrow. Here's why.
Source Fool.com
