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3 Stocks With Costco Wholesale-Like Return Potential

Shares of Costco Wholesale (NASDAQ: COST) have proven to be a solid investment, gaining 150% over the past decade, more than double the return of the S&P 500 . The company's prices are essentially unbeatable thanks to its warehouse-club model, and tens of millions of members shell out membership fees each year for access to its stores.

If you missed the boat on Costco, don't worry: There are other high-quality companies that have the potential to provide Costco-like returns. We asked three of our Foolish investors each to highlight a company that could do wonders for your portfolio. Here's why Nike (NYSE: NKE) , Align Technology (NASDAQ: ALGN) , and Walt Disney (NYSE: DIS) could match Costco's record in the coming years.

Image source: Costco Wholesale.

Hit the ground running with global growth

Steve Symington (Nike): As I think about stocks that might be able to rival the returns of Costco, I'm looking for businesses that have staying power, should deliver steady growth over periods of years, and preferably pay a dividend along the way. Athletic footwear and sportswear giant Nike immediately comes to mind.

In addition to its 1.2% annual dividend, Nike's shares recently jumped 9% in a single day after the company posted impressive fiscal fourth-quarter 2017 results just over a month ago. Revenue rose 7% at constant currency to $8.7 billion, net income increased more than 19% to $1 billion, and net income per share grew 22.4% to $0.60 -- with each figure arriving well ahead of the market's expectations.

This was an especially surprising development in light of the difficult domestic retail environment, which is holding back the growth of some of Nike's smaller, U.S.-focused competitors like Under Armour . To be fair, it helps that Nike already collects well over 50% of total Nike-brand revenue each quarter from markets outside of North America.

But Nike's global growth story is far from over. In part by focusing its efforts on roughly a dozen...


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