Costco Stock Rated Buy as UBS Highlights Growth Potential in Extended Hours Pilot

Costco Wholesale Corporation (NASDAQ:COST) ranks among the best set-it-and-forget-it stocks to buy. On June 13, UBS reaffirmed its Buy rating and $1,205 price target for Costco Wholesale Corporation (NASDAQ:COST), pointing to the retailer’s extended shopping hours pilot program as proof of its potential for further expansion.

Costco Stock Rated Buy as UBS Highlights Growth Potential in Extended Hours Pilot

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UBS sees the wholesale club’s recent announcement that it would test extended hours exclusively for Executive members as evidence that the company still has “ample tricks up its sleeve” in spite of concerns about its premium valuation.

According to UBS, Costco Wholesale Corporation (NASDAQ:COST) may see “a moderation in its sales in the coming months” as the gains from the sale of gift cards and high-volume precious metals start to wane. These product categories have played a major role in Costco’s “outsized growth” over the past year.

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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Read More: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds

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