Is Now the Right Time to Buy Costco Stock?
It's pretty clear that today's economic woes are weighing on stocks. Major indexes have slipped into a bear market in recent times. And retailers, which are dependent on customer spending at a time when consumers' wallets are hurting, haven't escaped the gloom. But there are some exceptions, and one of those is warehouse giant Costco Wholesale (NASDAQ: COST).
Costco has continued to grow profit and revenue. Its shares aren't rising, but they're still outperforming the S&P 500, having slipped 15% year to date while the index has dropped 21%. Does this mean now is the time to buy Costco stock?
Like other retailers, Costco is encountering higher inflation. In the recent fiscal fourth-quarter earnings report, management mentioned higher commodity prices, wages, and transport costs in particular. But it is still faring better in today's climate than many other retailers, for two reasons.
Source Fool.com
