Costco Stock Is 14% Below Its Record. History Says Buyers Have Usually Been Rewarded.
Past dips in the warehouse club's shares have mostly paid off. Does a better September make this one worth buying?
Overview
Shares of membership-based retailer Costco Wholesale (NASDAQ:COST) closed at a record $1,094.32 on May 19. As I write, they trade near $942, about 14% below that peak.
Drops like this aren't new to Costco, and they've usually worked out for buyers. Counting from 2010 and using closing prices adjusted for dividends, Costco shares had fallen at least 14% from a record close nine times before this latest slide. A year after each drop first hit 14%, the stock was higher in seven of those.
Details
Costco's latest sales update might give buyers a new reason to look, too. On Wednesday, Oct. 7, the retailer said that its comparable sales excluding gas and currency climbed 7.6% in September, up from 5.4% in August. And this eases the main worry I had about the business a week ago.
Source
Originally published at www.fool.com.
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