This Genius Move Should Put Costco Stock on Your Buy List
After a marathon of strong sales increases over the past two years, things are finally starting to settle down at Costco Wholesale (NASDAQ: COST). The mega-warehouse chain posted a single-digit comparable store (or "comps") sales increase in its 2023 first quarter for the first time since the pandemic started. Or is it the other way around? Are double-digit comps the new normal, and is this an anomaly as the economy retrenches?
That's yet to be seen. In the meantime, management indicated that a fee hike might be on the horizon. That was due to happen just about now anyway, and the genius move should keep Costco's coffers filled without too much heartache for its higher-income members. Together with some other possible moves, Costco stock is a strong bet to generate continued shareholder wealth.
Costco has demonstrated unprecedented growth since the pandemic started. It began with customers flocking to get their essentials at the best prices. That morphed into shoppers returning to buying bigger-ticket items as restrictions eased, and then it became shoppers pinching pennies as inflation jumped.
Source Fool.com
