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Costco Wholesale: Bulking Up.
- Article from:
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Kiplinger's Pick of the Day Web Feature
- Article date:
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June 9, 2005
- Author:
- Dixon, Lisa
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Copyright informationCOPYRIGHT 2005 The Kiplinger Washington Editors, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Kiplinger Washington Editors
Costco Wholesale's (COST) warehouse clubs may be a shopper's paradise. But given the company's solid growth prospects and its strong balance sheet, Standard & Poor's says now is a good time to go shopping for Costco's shares, too.
S&P says in this week's issue of The Outlook that "hypermarkets" and super centers such as Costco should do well in the coming year, and that Costco is one retailer that has found the right formula for growth.
Part of that formula is Costco's mix of products, which S&P says caters to higher-end customers. Analysts add that the company also plans to use some of its $2.7 billion in cash to add 25 to 30 ...