You Can Buy 1 Share of Costco for Less Than $1,000 Right Now. Here's Why the Price Could Go Up by the End of 2030.
Costco trades at a premium to every discount retail peer. Here's why this warehouse giant could still keep climbing through 2030.
Overview
Costco Wholesale (NASDAQ: COST) stock is trading for $954 per share today, June 26. Some investors think that's expensive, but I'm not terribly concerned about the price.
I mean, the stock looks pricey by pretty much any metric, especially in the context of its discount-retailer peers. From Walmart and Target to Dollar Tree and PriceSmart, they all trade at lower price-to-whatever ratios than Costco. This is true for price to earnings, price-to-book value, even the growth-adjusted price-to-earnings-to-growth (PEG) ratio.
Details
But the warehouse club has earned its lofty valuation ratios with fantastic business results, and I'm convinced that the best is yet to come. Here's why I expect Costco's stock to rise in the next five years, even from this high-priced starting point.
Source
Originally published at www.fool.com.