Why Costco Stock Is Cheaper Than You Think
Costco Wholesale (NASDAQ: COST) stock is rarely cheap, either objectively or compared with its competitors. But there are several reasons why the membership-based retailer makes for an excellent stock to own anyway -- and why it merits its premium valuation. Right now, for example, the shares trade at a price-to-earnings ratio of 38.5, just slightly above its 5-year average of 37.
Yet, that's actually less expensive than you might realize -- and it could be worthwhile to buy Costco stock at this price. I'll explain why.
Costco has historically been a great stock to own, easily beating the broader market. It has a differentiated model that generates high sales (usually increasing at a steady pace) as well as growing profits.
Source Fool.com
