Costco Stock in 2023: Bull vs. Bear
Costco Wholesale (NASDAQ: COST) saw sales surge over the past two fiscal years, as subscribers flocked to the retailer's warehouses to satisfy their shopping needs. The stock has followed suit, up 55% since the start of 2020, compared to a 19% rise for the S&P 500 over the same timeframe.
Given the recent strong performance, many investors are trying to figure out what's next for Costco. The start of a new year is a good time for shareholders to reassess why they like this business. Let's take a closer look at both sides of the investment argument for this top retail stock.
A top reason to like Costco as an investor involves the resilience of the business model. During the Great Recession more than a decade ago, the company's net sales declined by only 1.5% in fiscal 2009, its only down revenue year in at least the past 21 fiscal years. What's more, Costco really shined during the coronavirus pandemic, with annual revenue growth exceeding 15% in the past two fiscal years. Customers turn to Costco and its 847 warehouses to find the lowest prices around on a range of product categories, all in a no-frills environment. And this relentless focus on value will never go out of style.
Source Fool.com
