Costco outperformed the S&P 500 over the last 10 years by a wide margin. Much of the stock's previous 10-year return was due to an increase in the price-to-earnings multiple.
What a forgettable year it's been for shareholders of Costco (NASDAQ:COST), which is actually attempting to stage a comeback after falling into a brutal bear market.
Costco doesn't try to maximize revenue from merchandise sales, instead leaning on its membership model. The company's massive sales base, coupled with a limited SKU count, gives it a tremendous cost advantage.
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