Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Costco Wholesale Corporation (COST): What’s Driving Sales at This Retailer?

Costco Wholesale Corporation (NASDAQ:COST) has reported the lowest operating margin of 3% among the three mentioned peers, and highest one-year forward P/E of 21.98. Wal-Mart Stores, Inc. (NYSE:WMT) has lowest P/S ratio of 0.54, but with moderate operating margin and forward P/E. Target Corporation (NYSE:TGT) is performing the best among the three peers with the highest operating margin of 8.43% and the lowest forward P/E of 12.64.


Costco has achieved a high renewal rate for its membership, and was able to increase its membership fee revenue by 12% in the last quarter. It has store expansion plans this year, which has helped it to attract new members. It has also increased its international presence this year. Its stock repurchase program indicates confidence of the company in the stock and it is expected to do well in future. So, I will recommend a Buy.

Ash Sharma has no position in any stocks mentioned. The Motley Fool recommends Costco Wholesale (NASDAQ:COST). The Motley Fool owns shares of Costco Wholesale.

The article What’s Driving Sales at This Retailer? originally appeared on

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.