Costco's hidden power

In this installment of Investor Beat: The wholesale club hits an all-time high after reporting big earnings.

By Motley Fool Investor Beat May 30, 2013 5:11PM
Shares of Costco (COST) hit an all-time high on Thursday after the retailer reported a 19% increase in third-quarter profits. Costco racked up strong sales in both its domestic and international stores. 
What's behind Costco's success? Will the retailer continue to be a big hit on Wall Street? In our lead story on Investor Beat, Motley Fool analysts Andy Cross and Matt Koppenheffer discuss the future of Costco.
Shares of NV Energy (NVE) rose more than 22% Thursday morning on the news that it's being acquired by Berkshire Hathaway (BRK-B) subsidiary MidAmerican Energy. Berkshire Hathaway CEO Warren Buffett says NV Energy is a great fit. Is the deal a great fit for investors? Investor Beat discusses Berkshire's big buy. 

Shopping cart in supermarket copyright PhotoAlto, James Hardy, PhotoAlto Agency RF, Getty ImagesAnd we close Thursday's episode with two stocks to watch. Matt is watching Bank of America (BAC). Andy is watching Jos. A Bank (JOSB).

The Motley Fool's 12 top stocks for 2013 are now available! So if you're tired of picking stocks out of a hat and hoping that one skyrockets, check out Stocks 2013: The Investor's Guide to the Year Ahead. It's The Motley Fool's current top report, and includes Chief Investment Officer Andy Cross's top stock for 2013! This under-the-radar company is the secret winner in the war for the last precious drops of oil on the planet. Find out what it is and how you can take advantage of this unseen company's huge profits in this special, free report, just click here now

MSN Money on Twitter and Facebook

Like us on Facebook: MSN Money and Top Stocks

Follow us on Twitter: @msn_money and @topstocksmsn

May 30, 2013 9:59PM
Hats off to Costco CEO Craig Jelinek who has proven that if you pay workers well (about $40,000 year after just a few years of employment),and provide health insurance, not only does a company attract a higher caliber of worker and reduce employee turnover to about 5% (unheard of in retail), but the company gets loyal and professional workers who will go the extra mile for the customers and the company.  He has stood up to shareholders who think workers have to be paid poverty level wages in order to increase company profits, a strategy used extensively by that other big box store.  Also paying employees well allows them to stay off government assistance so state and federal funds aren't drained to subsidize low wage employees, making Costco essentially a "good corporate citizen."  If only more leaders of companies thought this way!
May 30, 2013 8:14PM

shop Costco  all the time....clean store, employees are helpful.  good price on gas.  I always find what I need.

40# of bird seed is a good price.  The Chocolate layer cake is soooo good!!!!!! Bakery is clean. Fresh meat and vegetables. Good parking, gas station right there.

I specifically shop at Costco because they treat their employees well, pay them a livable wage, and provide decent benefits including good health insurance.  I get no satisfaction from shopping at Walmart and saving 13 cents on a can of beans and realizing they are able to do this because they pay their employees terrible wages.  It's immoral to do this, and immoral for me to shop there.
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
100 character limit
Are you sure you want to delete this comment?


Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.


StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

125 rated 1
267 rated 2
455 rated 3
612 rated 4
682 rated 5
695 rated 6
632 rated 7
472 rated 8
279 rated 9
147 rated 10

Top Picks

TAT&T Inc9



Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.