Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, discount-warehouse 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, Wash. (1976)

Market Cap

$25.5 billion


Food and staples retailing

Trailing-12-Month Revenue

$71.42 billion


Co-Founder/Chairman Jeffrey Brotman
Co-Founder/CEO James Sinegal

Return on Equity (Average, Past 3 Years)



$3.73 billion/$2.3 billion

Dividend Yield



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

CAPS Members Bullish on COST Also Bullish on


CAPS Members Bearish on COST Also Bearish on


Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 96% of the 3,505 members who have rated Costco believe the stock will outperform the S&P 500 going forward. These bulls include tpc2104 and All-Star TMFActionJackson, who is ranked in the top 2% of our community.

In late August, tpc2104 listed several of Costco's cool points:

Strong management and balance sheet. Good sales. Great business model. Like others have said, low employee turnover, warehouses always packed with customers, new warehouses always opening. Decent dividend, which I suspect will only increase (versus stagnate) as Costco's business thrives.

In a pitch from last month, TMFActionJackson delivers a bull case directly from the top:

CEO Jim Senegal came to the Fool today and gave us some insight into his life long passion for retailing and how it manifests itself in running Costco. He is a humble leader who takes care of his employees better than anyone else in the industry. Their "treasure hunt" feel, smaller # of SKUs [stock-keeping units] per store and relationships with suppliers put them in a fierce competitive position. Inventory does not come on Costco's books until the item is actually sold. How's that for inventory turn?

What do you think about Costco, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!

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