Should Costco Initiate a Stock Split?

The increased attention on stock splits over the past couple of years has also increased attention for several stocks trading at higher nominal prices, including Costco Wholesale (NASDAQ: COST). As their stock prices have increased over time, several prominent companies have chosen to split their stocks. Some investors are wondering if Costco is next.

Costco continues to grow sales volume and expand in almost any economic environment. But since Costco stock has generally moved higher with that growth, Costco management may want to give added consideration to factors that might make a stock split advantageous.

Costco as a company is operating with more tailwinds than headwinds. Admittedly, Costco's market may appear saturated, at least in the U.S. It has opened warehouses in 46 U.S. states and serves every large metropolitan area in that country. But U.S. expansion is unlikely to level off anytime soon.

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Source Fool.com