The evergreen warehouse retailer still has a bright future.

Over the past five years, Costco 's ( COST -0.23% ) stock rallied 174% as the S&P 500 rose 86%. The warehouse retailer crushed the market even as the pandemic, inflation, rising interest rates, geopolitical conflicts, and other macro headwinds rattled the global economy.

That was a great run, but can Costco keep outperforming the market over the next five years? Let's review its business model, growth rates, and valuations to decide.

Why is Costco's business model so resilient?

Costco's members pay annual fees to shop at its warehouses, and those high-margin fees allow it to sell its products at nearly break-even margins. To keep its prices low, it leverages its scale to negotiate bulk rates with its suppliers. It

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