Why Costco Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, discount-warehouse giant Costco Wholesale (NASDAQ: COST  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Costco and see what CAPS investors are saying about the stock right now.

Costco facts

Headquarters (founded)

Issaquah, Wash. (1976)

Market Cap

$44.2 billion

Industry

Hypermarkets and super centers

Trailing-12-Month Revenue

$101.2 billion

Management

CEO Craig Jelinek (since 2012)
CFO Richard Galanti (since 1985)

Return on Equity (average, past 3 years)

13.3%

Cash/Debt

$5.6 billion/$1.4 billion

Dividend Yield

1.1%

Competitors

BJ's Wholesale Club
Target
(NYSE: TGT  )
Wal-Mart Stores
(NYSE: WMT  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 4,602 members who have rated Costco believe the stock will outperform the S&P 500 going forward.

A couple of months ago, one of those Fools, BuilderJS, succinctly summed up the Costco bull case for our community:

Compelling business model -- limited selection focused on value to the customer. Outstanding leadership and corporate culture that promotes business continuity. Excellent execution -- from the top notch merchandising, to the ability to negotiate with suppliers to the responsible growth plans.

Of course, this short pitch doesn't even come close to telling the entire story for Costco. You're in luck, though: The Fool's brand-new premium report on Costco tells all sides of the story for one of the most powerful retailers in the world. You can grab your copy now, which comes with free updates for 12 months, by just clicking here.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


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