đ When the market panics, smart investors take action. Costcoâs (NASDAQ:COST) recent dip after its Q4 and FY 2024 results isnât a weaknessâitâs an opportunity. With net sales hitting $78.2 billion and a 7.3% growth, Costco continues to demonstrate resilience in a competitive retail market. Remember, in investing, the price you pay for quality assets determines your returns, and Costco is a top-tier asset with a proven track record.
đ The fundamentals remain strong. Costcoâs annual net income rose to $7.367 billion, or $16.56 per diluted share, up 17.1% from last year. E-commerce sales surged by 18.9%, showing Costcoâs ability to adapt and thrive in an increasingly digital marketplace. Such results indicate a business that not only withstands challenges but excels in navigating them.
đĄ Beyond the quarterly numbers, Costcoâs executive membership program, which makes up 73.5% of total sales, proves the strength of its business model. Membership renewal rates in the U.S. and Canada stand at an impressive 92.9%. With 29 new warehouses planned for 2025, including international expansions, the growth outlook remains positive for long-term investors.
đ The recent pullback is a classic example of why buying on weakness works. While some may be spooked by short-term fluctuations, those who understand Costcoâs fundamentals see this as a golden opportunity. Growth in Canada reached 7.9%, while international sales rose by 9.3%. This resilience shows Costcoâs potential to deliver sustained returns.
đ Whatâs the takeaway? Costcoâs temporary dip is a mere blip in its long-term trajectory. The company continues to expand, innovate, and outperform its peers. Now is the time to actânot when the crowd catches up. True wealth is built by investing in high-quality assets when others hesitate.
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IMPORTANT: This article is of general nature only and readers should obtain advice specific to their circumstances from professional advisers.