Why Investors Are Paying a Premium for Costco Stock
Many investors are avoiding the retailing industry as if it were an out-of-favor strip mall. Wall Street is worried that the latest shopper traffic slowdown is just the beginning of a long, painful period of adjustment while physical stores lose relevance amid a surging digital sales channel.
Costco (NASDAQ: COST) stock hasn't been caught up in that pessimism. Yes, shares are just barely in positive territory this year, compared to an 11% gain for the broader market. But the warehouse retailer enjoys a large and, in my view, justified premium over its peers.
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Source: Fool.com