Costco Stock: Is Its Premium Price a Prelude to a Fall?
Costco Wholesale (NASDAQ: COST) has been a reliable market-beating stock for ages. The company operates under a warehouse model that breeds loyalty and sales growth, and it also pays a dividend. There's nothing not to like about Costco stock -- except for its valuation.
Is Costco's premium valuation a setup for a fall?
Costco has 879 warehouse stores globally, 606 of them in the U.S. It stands out from other discount retailers like Walmart and Target with its membership model, bulk packaging, and rock-bottom prices. There are other chains that have a similar model, like 's Sam's Club and BJ's Wholesale Club, but they don't have the same size or scale.
Source Fool.com