Costco Stock: Long Road To $300

I’ll cut to the chase: It should take ten to fifteen years for Costco stock (CSCO) to reach an earnings level that would justify a price of $300 per share, roughly double the $149 price of Costco stock that existed as of Friday’s close.

Considering that Costco stock only offers a starting dividend yield of around 1%, I assume that most people own Costco stock because they want it to give them strong capital appreciation.

That makes me pose the question: What business results would be necessary for this stock to legitimately double in value?

Because Costco has such strong relations between management and labor, has an unusually strong balance sheet of $4 … Read the rest of this article!