Bill,
There aren't any Costco stores here in my area, but if they are like the Sam's Clubs, then I don't think it would be wise to characterize them as recession proof.
Many Mom & Pop stores, clubs, lodges, groups, etc. buy their cookies, cokes, and whatever from these type of stores and they would be the first effected by a recession. As a result they would buy less stuff from Costco or a Sam's Club.
These stores are always going to appear busy, but in hard times, don't expect people to be buying those 6 cases of champagne and loading up on the 35" TVs, personal computers, and the Michelin tires. They will stick to the low margin grocery and sundry items.
Considering that COST has a P/E ratio of 27 something, I don't see how it could be any much better a stock than INTC with a P/E of 26 something.
If you want a good safe stock that has the potential of great growth, low P/E, high stability, recession proof, and buy out possibility, check out BLS. It's my favorite long. IMO, another good long that fell too far in the past month is KO. I'm pick some of that up right now. |
