Costco Is Down 10% in 6 Months While the S&P 500 Is Up 17%. Is Costco Too Cheap to Pass Up Under $900 a Share?
This "bargain price" may not be such a bargain after all.
Overview
Among retail stocks, Costco Wholesale (NASDAQ: COST) reigns supreme. Over the last decade, it has crushed the S&P 500 on a total return basis, 624% to 324%. Even successful rival Walmart (NASDAQ: WMT) has only grown by 415% during that time.
But this year, Costco's stock has hit the skids. Over the last six months, its shares are down 9.3%, trailing the S&P 500's 17.3% gain. Yet revenue and net income continue to rise, and Costco's stores seem more popular than ever.
Details
At this price, are Costco's shares too cheap to pass up? Or is this a sign of bad things to come? Here's why this "bargain" may not be all that it seems.
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.