Why Costco Is Poised to Keep Poppin'

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

$45.9 billion

Industry

Hypermarkets and supercenters

Trailing-12-Month Revenue

$103.1 billion

Management

CEO Craig Jelinek (since 2012)

CFO Richard Galanti (since 1985)

Return on Equity (average, past 3 years)

14.2%

Cash/Debt

$5.7 billion/$4.9 billion

Dividend Yield

1.0%

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 4,678 members who have rated Costco believe the stock will outperform the S&P 500 going forward.

Earlier this month, one of those Fools, All-Star BearTrade, offered some consumer insight into the Costco outperform case:

The moment I enter the door my carefully scripted shopping list is immediately chucked and I am pushing that cart down the aisles filling it with whatever I come to first. It's only after leaving the store and realizing I just dropped a couple hundred dollars again that I start trying to recall if I actually picked up anything on my list. And I am not the only one who does that, the same spell seems to be cast on everyone who finally found a place to park and entered the store. ...

[L]ast quarter sales show a 9 percent increase over the previous quarter, they are expanding both in the United States and into the international markets, people love to work there and they sell those amazing muffins.

Of course, Costco's low prices haven't just benefited customers -- 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, The Motley Fool's 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.

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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Related Tickers

9/16/2014 11:49 AM
COST $126.40 Up +0.69 +0.55%
Costco Wholesale CAPS Rating: *****
TGT $62.81 Up +0.60 +0.96%
Target CAPS Rating: ***
WMT $76.44 Up +0.63 +0.83%
Wal-Mart Stores CAPS Rating: ***

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