Costco (NASDAQ: COST) stock is popular on Wall Street for good reason. The warehouse retailer dominates a huge segment of the retailing industry, and its membership fee income provides earnings stability through a wide range of selling conditions. Costco's performance through every phase of the pandemic illustrated consumers' loyalty to the business, whether they're looking to save money during a downturn or splurge when incomes are rising.

But Costco's growth trends are slowing, and the stock is valued at a huge premium compared to other, more profitable retailers. So let's take a closer look at whether investors should be happily bulking up on Costco shares right now.

After seeming impervious to slowing consumer spending in recent quarters, Costco recently revealed that it is not immune to the trends that have hurt peers like Walmart and in early 2023. Comparable-store sales growth fell to below 1% in the U.S. market in March and slumped by 12% in the e-commerce channel. Overall comps were up just 3% compared to 7% in the previous quarter.

Continue reading

Source Fool.com