Bernstein Calls Costco (COST) a Top Defensive Consumer Stock

Costco Wholesale Corporation (NASDAQ:COST) ranks among the best stocks for a couch potato portfolio. Costco’s defensive earnings strategy combines foundational digital growth (app visits increased by 63%), executive membership adoption at 75.8% of sales, along with operating leverage increases in gross margins and SG&A efficiency.

On May 7, Truist Securities restated a Hold rating and a $977 price objective for Costco Wholesale Corporation (NASDAQ:COST). The firm highlighted that higher gas prices generated an increase in volume at Costco locations. The ancillary portion of the firm grew in the mid-30% range, while gas costs rose 26.2%.

Truist stated that the company’s capacity to meet its increasingly value-driven user base is under greater strain due to its extreme value assurance.

Conversely, on April 17, Bernstein named Costco Wholesale Corporation (NASDAQ:COST) as one of its top consumer stocks. According to the firm, Costco Wholesale Corporation (NASDAQ:COST) is projected to gain from rising inflation and act as a defensive tool. The firm forecasts the stock to continue its upward trend that began in 2025, owing to its attractive value proposition for consumers experiencing inflationary pressures.

A membership-based warehouse club, Costco Wholesale Corporation (NASDAQ:COST) offers bulk discounts on an array of products, including food, electronics, and household products.

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