Costco Stock at $945: Here's Why Investors Should Pause
It could be a case of buyer beware following an exceptional decade of returns.
Overview
Costco Wholesale (NASDAQ: COST) has been an undeniable winner for investors for a long time. The members-only warehouse retailer has built an empire on $1.50 hot dog meals and generated over 580% total returns over the past decade alone.
But it may be time to pause with shares trading at $945. As much as consumers love shopping at Costco, and as well-run as the company might be, even a perfect business can be a lousy stock if investors overpay for it.
Details
The issue isn't Costco as a company. It's a world-class business that leans on its overwhelming size and scale to sell bulk merchandise at low prices, making most of its profits on the membership fees consumers pay to shop at its club stores.
Source
Originally published at www.fool.com.
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