Is Costco Stock a Buy Now?
Costco Wholesale (NASDAQ: COST) stock is a perennial winner, beating the market time and time again. Even as sales growth has essentially stalled, Costco stock is still ahead of the S&P 500 this year, with a 23% gains versus almost 20% for the index.
There's obviously something investors see in Costco that's compelling them to pick up shares even in this pressured economy. Let's check out what it is and whether you should buy shares, too.
Sales growth has slowed to a trickle at Costco. In its fiscal 2023's third quarter (ended May 7), sales increased 1.9% year over year. Comps inched up 0.3%, and U.S. comps declined 0.1%. This was even worse in June, when sales increased 0.4% over last year and U.S. comps declined 2.5%. In this inflationary environment, even Costco's low prices aren't resulting in strong sales growth.
Source Fool.com
