Where Will Costco Be in 5 Years?
There may be no more unflappable retail stock than Costco Wholesale (NASDAQ: COST).
Shares of the warehouse retailer have marched higher consistently over the last decade, even as much of the brick-and-mortar retail sector has been turned upside down by the threat posed by Amazon and other online retailers -- and more recently the coronavirus pandemic.
Still, Costco has been a stalwart. The company benefits from multiple strengths and competitive advantages. First, it's an essential retailer, selling mostly consumer staples like groceries, household items like paper products and cleaning supplies, and gasoline. That has been a particular source of fortitude during the pandemic, as sales have surged as consumers have flocked to Costco for bulk goods like frozen foods and toilet paper. Costco's reliance on everyday items also helps make the company recession-proof, as its reputation for bargain prices will keep shoppers coming even in a bad economy like the current one.
Source Fool.com
