Why Costco Is Poised to Keep Poppin'

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, discount warehouse giant has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Costco and see what CAPS investors are saying about the stock right now.

Costco facts

 

 

Headquarters (founded)

Issaquah, Wash. (1976)

Market Cap

$47.9 billion

Industry

Hypermarkets and supercenters

Trailing-12-Month Revenue

$104.9 billion

Management

CEO Craig Jelinek (since 2012)

CFO Richard Galanti (since 1985)

Return on Equity (average, past 3 years)

14.2%

Cash/Debt

$6.5 billion / $4.9 billion

Dividend Yield

1.1%

Competitors


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 4,698 members who have rated Costco believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, TMFTailwind, succinctly summed up the Costco bull case for our community:

Love the business model -- COST leverages its scale to achieve lower prices and draw in customers, then profits off those customers via membership fees. Renewal rates on membership have been stellar AND stable over the business cycle, so COST enjoys strong cash flow visibility. Steady as she goes.   

Costco's low prices haven't just benefited customers -- shareholders have walloped the market, returning 11,000% over the past two decades. However, with prices near all-time highs, is the ride over for Costco investors? To answer that and more, The Motley Fool's compiled a premium research report with in-depth analysis on Costco. Simply click here now to gain instant access to this valuable investor's resource.

The article Why Costco Is Poised to Keep Poppin' originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Amazon.com and Costco Wholesale. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Increase your money and finance knowledge from home

Professional Vs Do it Yourself Investing

Should you get advice or DYI?

View Course »

Reading a Stock Quote

Learn to read the ingredients of a stock.

View Course »

Add a Comment

*0 / 3000 Character Maximum

1 Comment

Filter by:
elliebliss

Costco, Yes I like the store, but my question is? When will this company expand more in the areas that I am able to drive to? Melbourne, Florida does not have a store, Closest one is Orlando, or West Palm. Please add more to the Central Portion of New York .What would be wrong towards Binghamton , NY? Would like to see more of your Company rather than more Wall Mart's or Sam's. Think about it. Thank you

June 16 2013 at 5:04 PM Report abuse rate up rate down Reply