Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, wholesale club retailer Costco Wholesale (NASDAQ:COST) has earned a respected four-star ranking.

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

Costco facts

Headquarters (founded)

Issaquah, Washington (1976)

Market Cap

$20.71 billion


Discount, Variety Stores

TTM Revenue

$72.95 billion


Co-Founder/Chairman Jeffrey Brotman

Co-Founder/CEO James Sinegal

TTM Return on Equity


Dividend Yield



Wal-Mart (NYSE:WMT)

Target (NYSE:TGT)

CAPS members bullish on Costco also bullish on


General Electric (NYSE:GE)

CAPS members bearish on Costco also bearish on


General Motors (NYSE:GM)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 2,854 of the 2,995 members who have rated Costco -- some 95% -- believe the stock will outperform the S&P 500 going forward. These bulls include TMFVermont and KokueiOTD.

Last week, TMFVermont highlighted Costco's low-cost characteristics:

Strong Model (committed to low margin, pass on savings to the customers, volume pricing discounts on high quality goods, 87% membership retention!). Smart, dedicated management with one eye on defending their core business, and one eye on careful expansion.

In a pitch from January, KokueiOTD expanded on Costco's long-term advantages:

The company is strong, with competent management, a brand well-known for quality, and every year they seem to have more cash than the last. Costco may not be a particularly exciting company, but its business model works well for it and that steadiness may be something to envy. Costco provides great quality for great value, which gives them a dedicated consumer base.

Short term, the stock will most likely continue to decline due to the economic environment, though I'm also in the camp that believes that more people with turn to warehouse stores like Costco to get more bang for their buck. Long term, the company has consistently provided steady growth and I believe it will certainly continue the trend in future years.

What do you think about Costco, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Costco is a Motley Fool Stock Advisor and an Inside Value pick. Wal-Mart is also an Inside Value choice, and Google is a recommendation of Rule Breakers. The Fool owns shares of Costco. The Fool's disclosure policy always gets a perfect score.