Is It Too Late to Buy Costco Stock?
Costco Wholesale (NASDAQ: COST) stock is down around 8% from its all-time highs. A normal drawdown would be around 20%, with a really big one touching the 40% mark. Both have happened multiple times in the past. So now may not be the best time to buy Costco if you have a value bent. But if you are a growth-oriented investor, history suggests that this growing retailer might still be attractive.
Costco is a club store, which changes the dynamics of the retail sector a great deal. In effect, its customers pay it a membership fee for the privilege of shopping in a Costco store. In order to justify that fee Costco works very hard to keep its customers happy. That includes having low prices on desirable products, but it also means having responsive and happy employees and ensuring that the stores are well stocked, even during difficult times. On that last point, Costco actually chartered its own boats during the coronavirus pandemic so it would have goods to sell while other stores had empty shelves. It was an expensive decision, but it kept Costco customers paying those membership fees.
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Source Fool.com
