Buy Costco?
Its delivered 10% yoy growth last month. Ecommerce is doing even better at 15%
Solid company but valuation is a little rich. 460B on a net income of 7B. Even 1 year forward PE will be around 55-60.
None of the warehouse retailers can come close to the quality of Costco.
1. Its the best retail company - Amazon and Walmart dont even come close
2. Holding its stock is like becoming a fanboy or part of a cult. Like Tesla (Not google or meta). But people who love the concept of "blue chip" - love owning Costco. Not necessarily the most savvy buyers or the best investors.
3. Stock is valued higher than Google, Meta, Microsoft and Apple. Usually "growth" stocks command higher valuation. Not the stable will grow at x% ever year.
I think Costco will grow into its valuation in 4-5 years in terms of PE ratio being under 30. That doesnt mean price wont increase in the meantime if the market continues to reward it at a higher premium.
2. Holding its stock is like becoming a fanboy or part of a cult. Like Tesla (Not google or meta). But people who love the concept of "blue chip" - love owning Costco. Not necessarily the most savvy buyers or the best investors.
3. Stock is valued higher than Google, Meta, Microsoft and Apple. Usually "growth" stocks command higher valuation. Not the stable will grow at x% ever year.
I think Costco will grow into its valuation in 4-5 years in terms of PE ratio being under 30. That doesnt mean price wont increase in the meantime if the market continues to reward it at a higher premium.