January 23, 2013
In the video below, Fool analysts Blake Bos and Isaac Pino discuss Costco Wholesale (NASDAQ: COST ) and what investors need to keep their eye on.
Costco brings an interesting model to retail: Not a lot of promotions, not a lot of marketing. But people love it.
The question is: Can that translate to other countries? Costco has expanded to the U.K., where it now has 22 stores, and into Mexico and high-growth areas like the Pacific Rim, Australia, and South Korea, Isaac says.
But it faces competition. PriceSmart (NASDAQ: PSMT ) has a strong presence in Latin America and Wal-Mart (NYSE: WMT ) is known around the globe.
Membership is also another important area to watch for Costco. The company has sustained double-digit membership growth. But it also is looking to grow its pricier executive memberships. That could bring more to the bottom line.
Investors should keep a close eye on membership renewals and upgrades, Isaac says.
Costco Wholesale's low prices haven't just benefited customer-- shareholders have walloped the market, returning 11,000% over the past two decades. However, with prices near all-time highs, is the ride over for Costco investors? To answer that and more, we've compiled a premium research report with in-depth analysis on Costco. Simply click here now to gain instant access to this valuable investor's resource.