#8 - Costco (NASDAQ:COST)
Costco (COST) is showing that there can be steady growth in a sector that includes Amazon. Like other companies in this segment, Costco competes for the consumers who find buying in bulk an attractive option when the economy is good, and even more so when times get tough. These consumers are true believers in this model and, for them, a trip to Costco can be a destination shopping event. And while some retailers continue to struggle, Costco has seen same-store sales increase by almost 10 percent in the first half of 2018. And despite a price increase, membership renewal rates (which generate much of their profit) have remained steady at around 90 percent.
In fact, with their investment into e-commerce and home delivery and new locations due to open, including an anticipated expansion into China, analysts are predicting Costco’s net income average growth to be just shy of 12 percent (11.9) for the next five years. Costco’s stock is now trading near an all-time high, and while it may be seen as pricey now (their current price-to-earnings ratio is 28), the company is well positioned for long term growth, even if another global recession hits.
About Costco Wholesale
Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. The company offers branded and private-label products in a range of merchandise categories.
More about Costco Wholesale- Current Price
- $916.48
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 21 Buy Ratings, 8 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $1,029.00 (12.3% Upside)
