3 Reasons Costco Will Continue to Grow
Aside from some minor dips here and there, Costco (NASDAQ: COST) has been a steady growth stock for much of the past two decades. More recently, earnings per share (EPS) has shown a 9% compound annual growth rate (CAGR) from 2015 to 2019 in addition to a revenue CAGR of 5.6% over the same period. Costco's share price continues to trade at a heavy forward price-to-earnings ratio of 32.4 against the sector median of 15.8 -- pricing that suggests continued growth for the big-box retailer.
For some investors, the question arises as to whether Costco can maintain this growth trajectory. There are several factors that make owning shares of Costco -- despite its larger-than-average forward multiple -- a worthy investment. Here are three reasons that suggest Costco will continue to grow in the long term.
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Source Fool.com
