2024-05-31 18:36:56 ET
Summary
- Costco reported comparable sales growth and investors were rightly pleased.
- However, I believe we can almost take in no consideration this metric, as there's another which explains much better Costco's success and profitability.
- Understanding how Costco works may help us decide whether the high multiples are truly a hurdle or not.
Reversion to the mean, unexpected sell-off, dips, temporary weakness. These are all things we know stocks go through from time to time. And then, we stumble across a stock that consistently defies gravity without ever going hyperbolic. We're talking about Costco ( COST ) . Costco, of course, is a retailer. But once we understand how it runs its business, we find out it's a one-of-a-kind company with a business model that has become almost irreplaceable....
Read the full article on Seeking Alpha
For further details see:
Costco's Earnings: The Only Metric We Need To Gauge The Company