Costco Is One of the Largest Consumer Goods Companies by Market Cap. But Is It a Buy?

Costco Wholesale (NASDAQ: COST) is one of the top consumer goods stocks on the stock market.Since its IPO, the stock is up more than 4,000%, and Costco has been about as consistent a performer as they come in the sector as it benefits from a number of competitive advantages.First, Costco is more resilient to economic downturns than the typical big-box chain. Most of Costco's revenue comes from groceries, a recession-proof category as consumers need to eat regardless of the state of the economy. Additionally, its membership-based business model makes the business more stable than a typical retailer since its members have already paid a fee to shop there, and they're likely to want to take advantage of that and Costco's low prices. Finally, Costco also caters to a higher-income demographic because of its membership fees, and those consumers are less likely to change their behavior, even with the impact of a recession.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool