Sunday, April 8, 2012

5-Star Stocks Poised to Pop: Costco Wholesale

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, discount-warehouse giant Costco Wholesale (Nasdaq: COST  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Costco's business and see what CAPS investors are saying about the stock right now.

Costco facts

Headquarters (founded) Issaquah, Wash. (1976)
Market Cap $38.6 billion
Industry Hypermarkets and super centers
Trailing-12-Month Revenue $93.4 billion
Management CEO Craig Jelinek (since January 2012)
CFO Richard Galanti (since January 1985)
Return on Equity (average, past 3 years) 12.4%
Cash/Debt $5.8 billion / $2.3 billion
Dividend Yield 1%
Competitors BJ's Wholesale Club
Target
Wal-Mart Stores

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 4,411 members who have rated Costco believe the stock will outperform the S&P 500 going forward.

A couple of months ago, one of those Fools, toaoyoda, highlighted several of Costco's positives:

This retail powerhouse seems able to outstrip even Wal-Mart. ... It is increasingly trusted by its subscribers to offer all kinds of products at good values, not otherwise obtainable. It is the "safe place" to buy high-end electronics and also hearing aids and funeral caskets. Sub! scribers drive to shop at the nearest Costco and the number is increasing. Amazingly, even the employees regard Costco with favor. ... They seem like happy campers and that enhances the shopping experience. Their subscriber model seems less sensitive to economic fluctuations although bad times almost require shopping for value.

If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong five-star rating, Costco may not be your top choice.

We've found another retailer we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.

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