Costco Stock: Bull vs. Bear
Costco Wholesale (NASDAQ: COST) delighted investors recently with the announcement of a $15 special dividend. Costco stock is up 62% over the past year, outperforming the S&P 500, but there may be reasons to think twice about it. Should investors stay bullish on Costco stock right now?
Jennifer Saibil: Costco has been a market-beating stock for years. It operates a differentiated retail warehouse model driven by membership fees. Costco marks up its products by razor-thin margins to cover associated costs and takes the fee income for the bottom line. The low costs generate strong loyalty and drive high volume and sales, and Costco's model is resilient even under pressured conditions.
In its fiscal 2024's second quarter (ended Feb. 18), Costco's sales increased again after beginning to dip into negative territory last summer. Revenue rose 5.7% year over year, with comparable sales growth accelerating to 5.6%. E-commerce was a strong driver, up 18.4% over last year.
Source Fool.com
