Why Costco Is Poised to Keep Popping

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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 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

$44.0 billion

Industry

Hypermarkets and supercenters

Trailing-12-Month Revenue

$101.2 billion

Management

CEO Craig Jelinek (since 2012)

CFO Richard Galanti (since 1985)

Return on Equity (average, past 3 years)

13.3%

Cash/Debt

$5.6 billion/$1.4 billion

Dividend Yield

1.1%

Competitors

BJ's Wholesale Club

Target

Wal-Mart Stores


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 4,650 members who have rated Costco believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, PiggyBankRobber, succinctly summed up the Costco bull case for our community:

Their parking lots are ALWAYS packed from around Thurs.-Sun., and when gas prices go up, there are endless lines at their pumps.

In the next 5 years, the economy is said to start growing again, but very cautiously. In my opinion, caution to the average person means, buy your food, toiletries, and other basic needs in bulk to save money. Costco is the leader in terms of gaining customers in this way of thinking.

But beyond this, the CEO of Costco is a genuine person that I admire and that perhaps is the biggest reason this company will thrive. If there's one thing I learned from Motley Fool, is it's important to know who's running the ship.

Of course, that short pitch doesn't even come close to telling the entire story for Costco. You're in luck, though. The Fool's brand-new premium report on Costco looks at all sides of one of the most powerful retailers in the world. You can grab your copy here, which comes with free updates for 12 months.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Costco Is Poised to Keep Popping originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Costco Wholesale. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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