Costco’s (COST) Best-in-Class Merchandising Supports Long-Term Growth, Says UBS

Costco Wholesale Corporation (NASDAQ:COST) ranks among the best fundamental stocks to buy right now. On September 15, UBS upheld its Buy rating and $1,205 price target for Costco Wholesale Corporation (NASDAQ:COST), pointing to a number of growth levers that should support the retailer’s continued momentum.

omar-abascal-9Um7Huux0as-unsplash

The firm responded to recent market worries about Costco’s ability to maintain its performance, which were brought on by weaker comparable sales patterns in May and June that made some investors doubt the retailer’s valuation. According to UBS, these worries were interpreting the numbers “in a vacuum,” and they should have been allayed when Costco’s comparable sales and traffic reaccelerated in July and August.

The firm affirmed its optimism about Costco’s future, pointing to the retailer’s “best-in-class merchandising engine” as a crucial component that will help it maintain its pace in the upcoming months and quarters.

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

While we acknowledge the potential of COST to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than COST and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.

Disclosure: None. This article is originally published at Insider Monkey.