Costco Stock Is Doing Great! But Is It a Buy Now?
Costco (NASDAQ: COST) is hitting it out of the park right now despite the difficult retail backdrop. The company's sales and earnings numbers are nothing short of impressive, thanks at least partly to an advantaged business model. But does all of this make the stock a buy right now?Before getting into Costco's financial performance, it is important to understand the business. From a big-picture perspective it is a retailer, but when you dig into the model there's an important nuance. Indeed, Costco is a club store, which means customers pay a membership fee for the privilege of shopping in Costco's stores. This changes the dynamic dramatically.Image source: Getty Images.Continue reading
Costco (NASDAQ: COST) is hitting it out of the park right now despite the difficult retail backdrop. The company's sales and earnings numbers are nothing short of impressive, thanks at least partly to an advantaged business model. But does all of this make the stock a buy right now?
Before getting into Costco's financial performance, it is important to understand the business. From a big-picture perspective it is a retailer, but when you dig into the model there's an important nuance. Indeed, Costco is a club store, which means customers pay a membership fee for the privilege of shopping in Costco's stores. This changes the dynamic dramatically.
Image source: Getty Images.
