Prediction: Costco Could Be Worth More Than Home Depot and Lowe's Combined by 2030. Here's the Math.
Costco doesn't need to reinvent retail to overtake the home improvement giants. It just needs to keep doing what has worked so well for its members, warehouses, and bottom line.
Overview
Costco Wholesale (NASDAQ: COST) stock has been on an absolute tear over the last five years, jumping by more than 100% in five years due to its growing popularity and booming membership model. It is already one of the most valuable retailers in the world, but an interesting valuation race is hiding in plain sight.
As of Aug. 31, The Home Depot (NYSE: HD) was worth about $327 billion, and Lowe's Companies (NYSE: LOW) was worth about $115 billion. That gives the country's two largest home-improvement retailers a combined market cap of $442 billion.
Details
Costco, by comparison, was worth about $417 billion in July and August. That means Costco is only about $25 billion away from surpassing the combined market cap of these two companies. The question is whether Costco can close that gap by 2030. I think it can, and I think it can do so easily.
Source
Originally published at www.fool.com.