Where Will Costco Stock Be in 5 Years?
Over the past five years, Costco's (NASDAQ: COST) stock rallied 165% as the S&P 500 advanced less than 50%. The warehouse retailer easily outperformed the market as it consistently opened new stores, gained more paying members, and maintained high renewal rates.
Between fiscal 2017 and fiscal 2022 (which ended last August), its store count grew from 741 to 838 locations, its number of cardholders rose from 90.3 million to 118.9 million, and its global renewal rate climbed from 87% to 90%. During that period, its annual revenue grew at a compound annual growth rate (CAGR) of 12% as its EPS increased at a CAGR of 17%. Those stable growth rates made Costco a favorite evergreen investment for long-term investors. But will its stock continue to reach new highs over the next five years? Let's review its core growth strategies to find out.
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Source Fool.com
