Buy Costco Stock Because Its ‘Special Sauce’ Is Driving Long-Term Growth

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Buy Costco Stock Because Its ‘Special Sauce’ Is Driving Long-Term Growth
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Buy Costco stock because its ‘special sauce’ is driving long-term growth, this analyst says

Costco Wholesale stock was rising Tuesday morning, following an upgrade from Barclays, which argues there are about half a dozen reasons to buy the discounter.

There have been big gains in Costco’s monthly same-store sales throughout the pandemic, and Short thinks the comparisons will still look favorable in 2021, relative to many other essential retailers. Second, she thinks the factors that have driven Costco’s recent gross margin expansion are sustainable.

Those are just some of the more-immediate catalysts she sees for Costco. Longer term, she thinks the market isn’t fully appreciating the company’s e-commerce network, “a more meaningful advantage” than the stock appears to price in.

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