Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, discount-warehouse giant Costco Wholesale
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 | $32.36 billion |
| Industry | Hypermarkets and super centers |
| Trailing-12-Month Revenue | $79.89 billion |
| Management |
Co-Founder/CEO James Sinegal CFO Richard Galanti |
| Return on Equity (Average, Past 3 Years) | 12.8% |
| Dividend Yield | 1.1% |
| Competitors |
BJ's Wholesale
Target
Wal-Mart |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96% of the 4,035 members who have rated Costco believe the stock will outperform the S&P 500 going forward. These bulls include DigitalPaladine and All-Star Gordogato, who is ranked in the top 20% of our community.
Late last year , DigitalPaladine tapped Costco as a rather excellent opportunity: "I spend more money in that store than any other establishment. Excellent products, Excellent service, Excellent prices. Great business model. Lots of corporate customers. ... [E]xcellent reputation."
Over the next five years, Costco is expected to grow its bottom line at a 13.3% annual pace. That's faster than warehouse foes BJ's (10.4%) and Wal-Mart (10.7%), as well as single category competitors like Best Buy
CAPS All-Star Gordogato elaborates on the growth prospects:
Costco has tremendous customer loyalty and they are still expanding to new areas in the US and internationally. Look for coming "in-fill" expansion into new spaces in urban and inner suburb areas. ... Membership turnover rates are very low, and the stores are pushing membership level upgrades to earn more in member fees. The company has excellent management and treats employees, customers, and shareholders well.
What do you think about Costco, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Costco is a Motley Fool Inside Value and Stock Advisor pick. Wal-Mart is a choice of Inside Value and Global Gains. Best Buy is an Inside Value and Stock Advisor selection. The Fool owns shares of Costco, Best Buy, and Wal-Mart. Try any of our Foolish newsletter services free for 30 days.
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