2 Reasons to Buy Costco Stock -- and 1 Reason to Avoid it
You can tell just by a glance at its share price chart that Wall Street loves Costco Wholesale (NASDAQ: COST) right now. The warehouse retailer is trading near all-time highs, having jumped over 50% since early 2023. That's a better performance than many popular tech stocks have managed during this time.
What makes investors so enamored with Costco's business, given its relatively slow growth and low profit margin? And is there a downside to buying the stock after its recent rally? Let's dive right in.
For most retailers, the best way to judge the engagement level of their shoppers is to examine customer traffic. Costco's done well in this arena, with traffic up a blazing 5% worldwide and higher by 4% in the core U.S. market this past quarter.
Source Fool.com
