Costco Stock: Buy, Sell, or Hold?
With Costco (NASDAQ: COST) shares commanding more than a 56 price-to-earnings multiple at the time of this writing (more than double the S&P 500's multiple of about 24), it's fair to say that investors love the stock. Of course, Wall Street's love affair for the membership-based wholesale retailer's shares isn't surprising. Not only is Costco a great business growing at robust rates, but it provides investors with growing dividend income.
Still, even a great business can become a bad stock if its shares become overvalued. Has Costco stock reached this point? More specifically, let's explore whether the stock is a buy, sell, or hold today.
Recently wrapping up its fiscal year, Costco announced earlier this month that its total sales for the period rose 5% despite the fiscal year having one less week than the prior period. This was driven by growth in its global store count and an increase in comparable sales.
Source Fool.com
