3 Downsides to Ponder Before Buying Costco Stock

In a market teeming with negative sentiment, Costco (NASDAQ: COST) continues to rally. The retail juggernaut has climbed 54% in the past year, strikingly higher than the S&P 500's 5% gain in the same time frame. The company's long-term performance has been stellar as well -- Costco has returned a walloping 272% to shareholders over a five-year span, implying an average annualized return of 54%.

Given the ambiguity surrounding the stock market today, Costco may appear to be a worthy investment opportunity. After all, the company is as consistent as they come and boasts a superb financial track record. Although I don't know if Costco shares will continue in their upward trend moving forward, I am certain that the company isn't flawless.

With that in mind, let's explore three potential downsides all investors should be aware of before buying Costco stock today.

Source Fool.com