3 Reasons to Buy Costco, and 1 Reason to Sell
Costco (NASDAQ: COST) has endured four major U.S. recessions since the company went public in 1985. Yet the warehouse retailer's stock has still generated a total return of about 74,500% since its 1985 IPO, making it one of the greatest stocks of the past four decades.
But can it continue to grow as inflation, rising interest rates, and other macroeconomic headwinds rattle consumers and the markets? Let's review three reasons why I think you should buy Costco stock now -- and one reason why you might want to sell it.
Costco's recipe for steady growth consists of three basic ingredients. First, it leverages its scale to buy and sell bulk quantities of products at lower prices than Amazon, Walmart, and other large rivals. That model also strengthens its defenses against online marketplaces, since it's usually cheaper for customers to pick up those large products instead of having them shipped to their homes.
Source Fool.com
