Could Costco Be a Millionaire-Maker Stock?
Costco Wholesale (NASDAQ: COST) has long been an outperformer in the retail sector, and the impact of the pandemic has only widened the gap between the warehouse retailer and its peers.
While discretionary retailers have stumbled, Costco has surged as online sales have boomed and consumers have returned to stock up on essentials like food, cleaning supplies, and paper products. In the fourth quarter, Costco's comparable sales jumped 14.1%, excluding fuel prices and foreign exchange rates, showing that the membership-based business has thrived during the crisis -- as have peers like Walmart, Target, and Amazon, all of which offer wide ranges of products, including essential items, at low prices. Costco has also seen e-commerce sales nearly double, rising 91.3% in the quarter, a 16-week period that ended on August 30.
Year-to-date, Costco shares have gained 18%, beating the S&P 500's 5% gain, and Costco shares have increased by nearly 500% over the last decade, not including dividends. Costco's historical bona fides may be clear, but does this stock have what it takes to make you a millionaire? Let's take a closer look.
Source Fool.com
