"Shares of Costco ( NASDAQ:COST) have finally entered correction territory, dipping by close to 14% from its all-time highs. Indeed, buying the dip in the beloved bulk-buy retailer has paid off in a big way in the past. And while the price of admission is still somewhat steep, with shares going for 50.2 times trailing price-to-earnings (P/E) or close to 45 times forward P/E, I still view the $405 billion retail titan as worth consideration."
"And it's been a hit, not only for the warehouse retailing giant, but for early buyers who've now seen their investment surge, with gold prices recently eclipsing $4,000 for the very first time. More recently, Costco announced that it will sell weight-loss drugs such as Ozempic and Wegovy. Indeed, such GLP-1 drugs took the world by storm since their release, and while such drugs have lost much of their initial luster, I still think Costco stands to make a great deal from the move."
Shares of Costco have declined roughly 14% from all-time highs, entering correction territory while trading near 50.2 times trailing P/E and about 45 times forward P/E. The company retains strong foot traffic and effective in-store product placement that drives purchases. Costco expanded offerings to include gold bullion, which has been popular with customers, and announced plans to sell GLP-1 weight-loss drugs such as Ozempic and Wegovy. Reports indicate discounted pricing from manufacturers. These new revenue streams could bolster growth despite elevated valuation, while comparisons to other large-cap tech and retail peers affect relative attractiveness.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]