#5 - Costco (NASDAQ:COST)
Costco Wholesale Corporation (NASDAQ: COST) has been the Energizer Bunny of stocks over the past five volatile years. Quarter after quarter, year after year, it just keeps delivering growing revenue and earnings. That's a testament to the company's loyal customers who pay for the privilege of shopping at Costco. It's become one of the best defensive stocks for long-term investors.
The company is also overdue for a membership fee increase. The company's retention rate has stayed well above 90% with past fee increases. There's no reason to believe that would change.
The argument for a stock split starts with a share price above $750, and that the stock trades at around 47x forward earnings. That says the stock is a bit expensive. On the other hand, the average trading volume is down nearly 39% from the stock's 20-year average. Coincidentally, the last of the two stock splits Costco conducted occurred in 2000.
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.
Read More - Current Price
- $946.85
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 18 Buy Ratings, 9 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $908.81 (4.0% Downside)
