Costco Earnings Look Great. But Is the Stock Overvalued?

Last Thursday, Costco Wholesale (NASDAQ: COST) reported impressive fiscal fourth-quarter results, with both revenue and earnings per share exceeding expectations. The membership warehouse retailer continues to lean on a high-renewal, fee-driven model that makes its results unusually predictable, even when consumers are cautious. Shares were roughly flat in after-hours trading as investors weighed a premium valuation against yet another strong quarter.Costco is a membership-based retailer that operates 914 warehouses globally, plus e-commerce in major markets. Its scale, limited-SKU model, and private label penetration help it offer low prices -- a formula that typically shows up in steady traffic and reliable fee income. The latest quarter kept that story intact, setting up the key question for investors: Does the current stock price still make sense?Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool