PriceSmart, Inc. (PSMT) Is Still A Solid Long-Term Buy

The second variable to watch is same-store sales. This variable is important, because it lets you know that revenue is increasing organically, rather than from simply opening more stores. Here’s how the company has fared since I bought in:

Source: SEC filings.

Though some might be concerned that the numbers are slowing down, I think that’s only natural. As time goes on, it gets harder and harder to match the previous year’s numbers. As long as same-store sales are increasing by 5% or more, I’ll be satisfied.

What should you do?
If you’re looking to buy into PriceSmart now, I suggest doing it in stages. At today’s P/E ratio of 34, the stock certainly isn’t cheap. It would be worth buying a starter position now and adding to that position either as go down or you get more knowledgable about the company.

The article This Latin American Retailer Remains a Solid Bet for My Retirement originally appeared on Fool.com.

Fool contributor Brian Stoffel owns shares of PriceSmart. The Motley Fool recommends Costco Wholesale (NASDAQ:COST) and PriceSmart and owns shares of Costco Wholesale.

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