Alphanso’s AI Stock Research picked COST as one of the top stocks of the year.
Alphanso Rating: 9.1/10
Return Potential: 20%
COST (Costco Wholesale Corporation) pick stands out due to its impressive competitive advantages and track record for market-share growth through a wide range of selling environments.
Fundamental Metrics:
- Revenue growth (fwd) of 8.9% vs. 5.4% sector median and EBITDA growth (fwd) of 10.2% vs. 4.7% sector median suggests that its products and services are highly competitive.
- The ROE of 28% vs. sector median of 11% indicates that its management is highly efficient and shareholder-friendly.
- The Beta of the stock is 0.79 which means it has low volatility and is relatively less risky, which is ideal to hold in the current economic environment.
- The bulk retail outlet has made it clear that it intends to redirect most excess profits and cash into extending its price-advantage lead in the industry but has lately re-announced dividends.
- $COST has beaten earnings expectations 70% of the time in the past 15 years.
Technical Metrics:
Based on the Alphanso model, the stock is trading below the expected channel (range) of $630.4-$651.7
