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Costco: Buy, Sell, or Hold?


Costco Wholesale (NASDAQ: COST) traces its roots back to the mid-1970s when it opened its first warehouse. It has since evolved and become a popular place for members to shop. The business has done incredibly well, and shareholders have been amply rewarded. Over the last 10 years, its shares gained 588%, easily trouncing the S 500's 184% increase.

While Costco has been a very successful company, retailers can't rely on their past or their reputation. Bankruptcy court is filled with once-prominent franchises such as Toys R Us and Sears. That's why it's important to understand the underlying business. Does Costco still offer an attractive investment opportunity?

Image source: Getty Images.

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Source Fool.com

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