Owning shares of Costco Wholesale (NASDAQ: COST) turned out pretty well for investors last year. The leading warehouse club operator delivered a 33% return in 2020, significantly besting the S&P 500‘s 18% gain.
It’s easy to see why Costco beat the market. It has stepped up during the pandemic, expanding on its position as a popular place for shoppers to stock up on groceries and other essentials in bulk. But at this stage in the crisis, most large retailers are back to being fully open, and the healthcare system has begun to distribute a pair of effective COVID-19 vaccines. With more chains now vying for attention, and additional vaccines likely to reach the market, will Costco be able to deliver another standout performance in the year ahead?