How has Costco changed since it started

Costco Wholesale share currently Costco: One can only regret it

Costco Wholesale is the operator of the department store chain of the same name and one of the US market leaders in this area.

A machine

If you observe the price development of Costco over the years, one thing becomes very clear: The share is a massive outperformer, hardly volatile and actually always trades at an all-time high.

Looking back, investors can only regret not being invested. Costco seems indestructible to be, that is also shown by the current crisis, but more on that later.

The long-term extremely strong development of the share has only one reason - you will already guess it: Fundamental data.
Costco has nearly increased sales from $ 77.95 billion to $ 152.70 billion over the past decade double. At the same time, profitability improved and earnings climbed from $ 2.92 to $ 8.26 per share.

Make your life easier

Strong companies stay strong and weak companies stay weak. It's banal, but on the stock market investors behave as if that weren't the case.
They buy shares in scrap companies as if that doesn't matter. I never understood and I never will.
Even if it's just supposed to be a trade, it doesn't make sense.

As an example, let's take the weakest stock in the S & P500 over a period of 12 months: Occidental Petroleum. The stock has plummeted 68%.
One could argue that it is clear that it is due to the weak oil price. In fact, there was no money to be made with the stock in the 15 years before. Coincidence?

Now the question for all short-term traders: Where will it be easier for you to take a nice long trade - and that make up 99% of trading activity - with you? Occidental or Costco?

Remove all the losers from your watchlist and your universe of stocks. Waste Don't waste your time with it. You don't have that time elsewhere, namely with the outperformers.

Corona? Was there something?

So strong remains strong, which is particularly evident in crises. Costco has a secure business model and also a clean balance sheet. The second applies to all top companies, it suits them in blood.

Covid-19 also poses challenges for the company, but you master them and emerge stronger from them. Small competitors simply die away.

Last week, figures were presented that extend into May. The expectations were met. Sales increased over the year, profit only declined slightly.

In May, sales per branch were 9.7% over the previous year. The online business has more than doubled. That is really tremendously strong.
Even in this environment, profit should continue to grow for the year as a whole. There is not much left to say about this.

In return, Costco is also highly rated. The share is not a bargain. But it is very likely that it will continue to beat the market in the future.

Chart

The share is clearly bullish overall. For anti-cyclical investors, the support at USD 300 and USD 290 are interesting, as is the uptrend near USD 285.

On the other hand, if the week closes above 310 USD, there is a buy signal with possible price targets at 317 and 325 USD.

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