Costco Is Still Worth Buying

The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics around the investing world.

True to form, Costco showed why it's still one of the strongest retailers today and a great company to own. The mass retailer is focused on winning customer loyalty by offering a tremendous value. Even with Wal-Mart and Target breathing down its neck for years, Costco continues to grow. Sales were up 14% overall last quarter, with a 5% increase in same-store sales. More specialized retailers like Safeway and Best Buy continued to experience a slowdown because of the sluggish economy. Costco always looks expensive, but that's for good reason. It is a high-quality company with a strong competitive advantage that will create value for shareholders for years. It's a good addition to any portfolio.

To learn about two retailers with especially good prospects, we invite you to take a look at The Motley Fool's special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform and how they’re planning to ride the waves of retail's changing tide. You can access it by clicking here.

David Meier has no positions in the stocks mentioned above. John Reeves owns shares of Costco Wholesale. The Motley Fool owns shares of Best Buy and Costco Wholesale. Motley Fool newsletter services recommend Costco Wholesale. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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