Costco in Nosebleed Territory
Deep discounter Costco (COST) is a great company in a favorable industry for tough economic times. Since the 2009 bottom, Costco has been setting higher highs and higher lows -- and on Monday that pushed the stock intra-day to a nosebleed $100.71. That represents a valuation of 26x the company's full-year estimate of $3.87 for fiscal 2012 (ended Sep. 1). While Costco's dividend has increased to $0.275 quarterly, the share-price rise had the current yield down to 1.1% at Monday's peak.
So, while Costco's merchandise is usually a buy, the stock is not....267 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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