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Is This the Single Biggest Bear Argument for Costco Stock?


Many investors would agree that Costco Wholesale (NASDAQ: COST) is a wonderful business. It has an impressive track record of steadily growing revenue and earnings, possesses a cost advantage in the retail sector, and operates a successful membership model that drives customer loyalty. 

These favorable traits have led to tremendous returns. In the past decade, its shares are up 395%, beating the Nasdaq Composite by a sizable margin. 

However, investors would probably be more well-informed in their understanding of the business if they also knew about Costco's biggest bear case. Let's take a closer look at this top retail stock and what investors should keep in mind.

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Source Fool.com

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