Trading at record highs thanks to its 60% rally over the course of the past 12 months, Costco Wholesale ( COST 0.35% ) stock could be a bit intimidating. It feels like a pullback could be in the offing.
And, maybe that's exactly what's in the cards. Perhaps the bigger risk here, however, is at the other end of the continuum. That is, waiting any longer to buy into this red-hot name could prove costly by virtue of missing out on more upside.
This stock's got a long history of tacking even more gains onto its past gains, after all. In fact, there are four specific reasons Costco stock could readily continue its current rally. 1.
Costco's business model works Beginning with the obvious, Costco's business model clearly works. Costco Wholesale is a club-based retailer . With just a passing glance it looks a lot like Walmart (NYSE: WMT) , Kroger (NYSE: KR) , or Target (NYSE: TGT) .
There are key differences between Costco and most similar retailers though. That is, shopping at a Costco store requires a paid membership to the "club." The company also sells more of its goods in bulk quantities as a means of offering value.
Given that Costco has been the company it is today since the 1990s, one might think consumers would eventually become weary of paying a retailer just for the right to shop at its stores. You might also expect that company's competitors to counter with something comparable. And for the record, Walmart has; the nation's nearly 600 Sam's Club warehouses are actually o.
