Why Costco Could Be a Great Buy Right Now

Year to date, shares of global retailer Costco Wholesale (NASDAQ:COST) are up 20%, right around the S&P 500's gains of 19%. The stock isn't cheap as it trades at around 40 times its earnings – a hefty multiple even for high-performing tech companies.

But there could still be more gains ahead, even though Costco's shares aren't cheap. For one, the company is still generating great numbers. Although pandemic-induced buying led to significant growth in 2020, Costco continues to build on that success. On Oct. 6, it released its monthly revenue figures and for the five-week period ending Oct. 3, its comparable sales were up 14.3% from the same period a year ago. And its e-commerce sales grew by 10.6%.

The business is still doing well as it remains a popular option for consumers.

Another reason investors may want to pick it up now: Costco is usually a strong performer in November, which is after it reports its first-quarter earnings. Last November, the stock rose 9.6% and for more than a decade, it has achieved positive gains during the month -- you have to go back to 2008 for the last time Costco's stock was in the red in November.

That's a short-term reason to buy the stock but over the long term there are many more. From its loyal customer base to strong profits and even a dividend, this is a stock you can buy for not just one month but many, many years. Although it could be cheaper, with the company performing so well, a dip in price may not be coming anytime soon.