Costco Wholesale Corp. (Nasdaq: COST) is a multinational corporation based in the United States that operates a chain of membership-only warehouse clubs. How does Costco stock rate?
Founded in 1983 by James Sinegal and Jeff Brotman, Costco is now one of the largest retailers in the world with over 830 stores across 11 countries.
The company’s mission statement is “to continually provide our members with quality goods and services at the lowest possible prices.”
Today, we’ll look at Costco’s history, its finances and dive into its Stock Power Ratings.
Costco Grows to 838 Locations Worldwide
The first Costco store was opened in Seattle, Washington. It quickly gained popularity due to its unique model of selling goods at low prices and offering an annual membership program.
This allowed customers to purchase items in bulk at a discounted rate.
Today, it operates around 838 locations worldwide and employs more than 250,000 people.
Its warehouses offer a variety of products including appliances, electronics, health, beauty products, apparel, jewelry, automotive supplies, toys and office supplies.
Outside of stores, Costco provides additional support for its members through its website.
It has an established customer base consisting of more than 94 million members worldwide.
Costco also invests in digital capabilities to keep up with changing consumer behaviors and trends.
This includes developing e-commerce platforms as well as mobile applications that allow customers to shop from anywhere at any time.
Its expansion plans now include opening locations in Asia and Latin America.
Costco Stock Power Ratings
In fiscal 2022, COST reported net sales of $222.7 billion — a 16% increase over the $192 billion reported in 2021.
Costco stock scores a 65 out of 100 on our proprietary Stock Power Ratings system.
This means we are “Bullish” on the stock and expect it to outperform the broader market by 2X over the next 12 months.
COST Stock Power Ratings in December 2022.
COST earns its highest rating on our quality factor … scoring an 88.
Its double-digit returns on equity and investment outpace the general merchandise retail industry.
COST also scores in the green on growth … where it posts a 66.
The company’s one-year annual sales growth rate is 15.8%, while its earnings-per-share growth rate is 16.6%.
Costco does take a hit on our size factor … scoring a 3 … with a $203.2 billion market cap.
Research shows stocks of the largest companies tend to lag the returns of otherwise equally rated smaller companies.
The bottom line: With more than 800 stores located around the world, COST has grown into one of the largest retailers in the world.
Its business model of selling items in bulk at a discounted rate has helped the company achieve annual sales growth.
But before deciding to invest in Costco stock, make sure to check out our Stock Power Ratings system to get the full story.