Marvin Samuel Tolentino Pineda
Almost nine months to the day after my last article, I am returning to Costco (NASDAQ:COST) (NEOE:COST:CA) - and while I’d like to say not a moment too soon, the truth is a
Costco: I Was Wrong, Upgrading To Buy
Summary
- Costco has significantly outperformed the S&P 500, rising 35% in nine months, prompting a reassessment of its stock rating from Hold to Buy.
- Despite a high P/E ratio, Costco's strong retail operations and potential in Retail Media Networks justify a small Buy position.
- Costco's unique customer loyalty and comprehensive purchase data position it well to challenge Amazon in the RMN space, potentially generating substantial future revenue.
- The recent fee hike and increased membership numbers indicate continued financial strength for Costco.
Max Greve is a graduate of Northwestern University with a quadruple major in History, Economics, Political Science, and International Studies. Max is a full-time writer and in addition to stock market trends also writes articles on government, current events, macroeconomic trends, and last but not least, the ongoing inefficiencies of professional sports.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in COST over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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