Where Will Costco Stock Be in 3 Years?
Costco (NASDAQ: COST) has long been a consistent winner on the stock market. The retailer has one of the most resilient business models in its industry, and the brand has long had a loyal customer base, made up of people who love the retailer's quality goods at low prices, the treasure-hunt nature of the shopping experience, and bargain prices on products like rotisserie chickens.
As a business, Costco has found success with its membership model, as membership fees drive most of the company's profit. It's also been able to expand its store base at a time when many retailers are relying on e-commerce for growth, and Costco has also successfully incorporated e-commerce into its business model.
Shares of the warehouse retailer are expensive, trading at a price-to-earnings ratio of 52, but that shows that it's earned a premium from investors.
Source Fool.com
