Costco Stock Is Down 24%. Is It Time to Buy?
Costco Wholesale (NASDAQ: COST) has been caught up in the broader market sell-off. The brick-and-mortar retailer has done an excellent job since the coronavirus outbreak, capitalizing on rising customer demand. It was deemed an essential retailer and allowed to stay open when non-essential businesses were forced to close their doors to in-person shoppers.
Given its solid growth in sales and profits, combined with a falling stock price, it's no surprise that some investors are asking if this is an excellent time to buy Costco stock. Let's evaluate below.
In its most recent fiscal quarter, which ended on May 8, Costco's overall revenue increased to $52.6 billion. That was up from $45.3 billion in the same quarter of the prior year. Recall that this time last year consumers were flush with more cash after receiving stimulus checks from the government. Moreover, business restrictions on non-essential enterprises were more common, leaving consumers with fewer choices on where they could spend their money. Costco's sales growth on top of that difficult comparison to last year is impressive, to be sure.
Source Fool.com
