Decide: Sell or Not-Costco
Q:If you own Costco stock is it worth it or will you be better off selling it
Why we should keep Costco:
- Costco is doing well enough to open 30 stores worldwide in the past fiscal year and has even started building a new one near my house!
- Their net sales for the past quarter is were close to 77.5 billion, a 9.4 increase from last quarter
- Costco's net sales for the fiscal year were 237.71 billion, a increase of 6.2 percent from last year so Costco has been doing pretty well.
- Compared to Costco's main competitors(Target and Walmart) Costco is doing way better.This is because they have many advantage's such as the following: Costco has it's own brand called Kirkland Signature.Using this brand they are able to market items for a attractive and low price causing more people to flock toward it.Many groceries have their own private labels but what makes Costco more appealing is it's good quality.We shouldn't expect to see walmart or target overtake Costco.
Diving Deep-Costco vs Walmart:Who is better
Walmart and Costco are equally impressive in their own way.But I believe Costco is far more superior.Even though Costco had a revenue of 242 billion compared to Walmart's far superior revenue of 611 billion Costco has several advantages.Costco's income growth is 9.4% while Walmart has a income growth of 1.24%.Walmart is a high performance stock as it's share price has had a 17% incline in the past year but Costco is an equal mix of decent operating results which guarantee a growth in stock price and customer loyalty and special dividends which make it superior.
- They have a dividend yield of 0.72% which means that they offer 0.72 percent of their profit per share to the shareholders and a quarterly dividend of $1.02 per share.
- Their net sales have increased by 15,000 in the past year so we can only say that they will grow more in the upcoming years
- Costco is able to manufacture their variety of goods at incredibly fast rates to supply demand, making it hard for other companies to even stand a chance.
- Recently, Costco has been selling gold bars and on the first day selling this product they fully sold out which I think shows the trust customers hold in Costco.
- Costco is a long term investment so you shouldn't expect to see a good return till a year or two.This can be perceived as good or bad but it means this is a stable investment.Costco is a company that's financially doing quite well so even if they underperform they will manage to bounce back.
- It's been almost 23 years since Costco last split so we should be expecting a stock split in the upcoming year or two especially since Costco's stock price has climbed high.The stock split would increase the amount of shares we own and decrease the price of the stock.This would be a good thing because prospective stock buyers who have been waiting for Costco's price to decrease would buy the stock and the stock would go up, in turn generating profit for us.
- With such dazzling numbers I don't think that Costco's stock value will decrease and I believe Costco shouldn't be sold.
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