Costco Stock: Buy, Sell, or Hold?
When it comes to solid retail businesses, investors may struggle to outdo Costco (NASDAQ: COST). The warehouse retailing giant's stock seemingly continues to defy gravity. Despite increasingly strong arguments for the stock's overvaluation, it is up 50% over the last year.
That situation understandably leaves investors wondering how to move forward with Costco stock. Do the continued increases mean investors should buy because its valuation no longer matters? Also, even if one holds it, can a shareholder make a case for staying in the stock, or is its price so stratospheric that all investors should stay away? Given these possibilities, investors should take a closer look at the retail stock before making such decisions.
Despite the intense competition in retailing, Costco holds some distinct advantages. Indeed, it has to compete with Amazon, which does not have the overhead costs of maintaining warehouse stores and has other businesses that could theoretically absorb the losses of retail operations.
Source Fool.com
