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Costco highlighted as resilient option amid inflation and rate worries
The article notes Costco has delivered positive net sales growth in 32 of the past 33 years, with only a 1.5% decline in 2009.
The Motley Fool points to a market backdrop shaped by rising inflation concerns, oil near a six week high, more tariffs, and ongoing Middle East geopolitical tensions, alongside expectations that the Federal Reserve is more likely to nudge rates higher than lower.
Against that uncertainty, it highlights Costco as an “all weather” retailer for investors worried about a possible midyear market downturn, arguing the company’s business model is built to hold up through weaker consumer conditions.
The piece says Costco trades at about 47 times trailing earnings and cites a dividend yield of 0.6%, while also pointing out the retailer has delivered special dividends “every few years.”
It adds that Costco posted positive net sales growth in 32 of the last 33 years, with the only shortfall being a modest 1.5% decline in 2009 during the Great Recession, and describes the stock’s lower volatility profile using beta figures.