Anders admires Costco
Anders points to the company's operating-margin growth, which is better than that at BJ's
The problems for Costco aren't just company-specific. The overall economy is threatening many retailers, and we've seen the impact on retailers across the board. Sure, Costco attracts higher-end consumers, but we recently witnessed the bull's-eye shrinking at Target
We're faced with a company that has already been experiencing negative profit growth throughout the past year. The company has shown signs of struggling and is operating among unfavorable economic conditions, such as credit woes and falling home prices.
So can the company really revitalize its earnings potential with all of the additional factors to contend with? I don't think so. To top things off, the company commands a rich stock price of 26 times trailing earnings and a PEG of 1.91.
So jump on the bear train. This company may offer some great deals on bulk boxed cereal, but when speaking of its stock, there's not much worth crunching on.
Fool contributor Larry Rothman is happy to receive feedback, and he promises to read it when he's not being wrestled by his three children. He doesn't have any positions in the companies mentioned. The Fool has a disclosure policy.