Should You Forget Costco? Why You Might Want to Buy This Unstoppable Growth Stock Instead.

Group 1: Costco Overview - Costco is a strong business with a high customer retention rate of approximately 90%, generating a stable income stream from membership fees [4] - In fiscal Q3 2025, Costco's same-store sales increased by 5.7%, with store traffic up by 5.2%, indicating customer satisfaction [5] - Costco's valuation metrics, including price-to-sales, price-to-earnings, and price-to-book ratios, are significantly above their five-year averages, suggesting it may be overvalued [6][8] Group 2: Investment Comparison - PepsiCo is currently viewed as a more attractive investment option, with a dividend yield of 3.8%, which is near its historical highs, and its price-to-sales and price-to-book ratios below their five-year averages [9] - Despite facing near-term challenges, PepsiCo has a strong history of growth and is recognized as a well-managed company in the consumer staples sector [10][12] - The current market conditions have led to PepsiCo's stock being undervalued, presenting a potential buying opportunity for long-term investors [13][14]