Is Costco a Bear Market Buy?
The current economic environment has been tough on retailers. Rising interest rates and supply chain disruptions have hurt the earnings of many. And retailers also face the problem of consumers reining in spending. As a result, the shares of many retail stocks have declined.
The market hasn't spared wholesale retail giant Costco (NASDAQ: COST). The stock has dropped 17% so far this year. But before stuffing Costco into the same bag as struggling retailers, let's take a closer look at this player. Is Costco actually a good bear market buy?
Costco's business model is different from that of most retailers. The company actually makes money from shoppers before they even walk through the door. That's because you have to pay for a membership to shop at Costco.
Source Fool.com
