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. 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 as one of its top consumer stocks. According to the firm, Costco Wholesale Corporation 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 offers bulk discounts on an array of products, including food, electronics, and household products.

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