Costco Stock's Renewal Rates Are Taking a Hit. Should Investors Be Concerned?

After a powerful multi-year run, Costco Wholesale (NASDAQ: COST) has finally given investors something to worry about (or has it?): Membership renewal rates slipped in its most recent quarter. That's a meaningful headline because the membership warehouse club's economics are built on recurring fee income and consistently high renewals.But the full story is more nuanced. Membership fee dollars rose briskly and paid memberships grew nicely. Further, management provided a good excuse for renewal rate pressure.The bigger question for investors right now is arguably whether a premium valuation leaves little room for disappointment.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool