Business risk concept

Seeking Alpha’s Jordan Sauer writes:

Summary

– Big-Box retailers are trading at stretched valuations and may prove to be more cyclical than investors believe.

– An intensive look at what drives growth at Costco and Walmart allows for an estimate of future returns.

– We believe the bubble peaked early this year, and a tough decade awaits the shareholders of COST and WMT.

No Price Too High

The valuations of big-box retailers may have peaked at the beginning of this year. Costco’s valuation reached nearly 50x earnings in ...

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