Costco Wholesale (NASDAQ: COST) experienced a surge in growth over the last three years, as customers shifted their spending to essentials during the pandemic. The stock responded by nearly doubling in value from 2019 through 2021. 

But Costco's sales growth is starting to decelerate back to pre-pandemic rates. The stock has fallen 17% since hitting an all-time high of $612.27 last year. Over the last few years, investors have bid up the shares much faster than the actual rate of growth in Costco's revenue and profits, which has made the stock very expensive.

Let's look at Costco's recent sales performance and why investors might want to avoid buying the stock right now.

Continue reading

Source Fool.com