Does Costco Wholesale Corporation (COST) Have a Positive Outlook in the Challenging Environment?

Madison Funds, managed by Madison Investment Management, released its “Madison Sustainable Equity Fund” fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 7% compared to a 7.56% return for the S&P 500 Index. In the quarter, sector allocation was negative while the stock selection was positive. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Madison Funds highlighted stocks like Costco Wholesale Corporation (NASDAQ:COST) in its Q4 2022 investor letter. Headquartered in Issaquah, Washington, Costco Wholesale Corporation (NASDAQ:COST) operates membership warehouses in multiple countries. On January 13, 2023, Costco Wholesale Corporation (NASDAQ:COST) stock closed at $485.25 per share. One-month return of Costco Wholesale Corporation (NASDAQ:COST) was 5.16%, and its shares lost 3.53% of their value over the last 52 weeks. Costco Wholesale Corporation (NASDAQ:COST) has a market capitalization of $215.319 billion.

Madison Funds made the following comment about Costco Wholesale Corporation (NASDAQ:COST) in its fourth-quarter 2022 investor letter:

Costco Wholesale Corporation (NASDAQ:COST) stock fell after November sales results showed a slowing consumer. The slower November sales were followed by a slight first quarter miss with lower-than-expected margins. Costco commented that they are not seeing trade-down but private label penetration has increased modestly. Traffic continues to be positive, and Costco remains well-positioned in a more challenging macro environment due to its strong value proposition.”

Costco Wholesale Corporation (NASDAQ:COST) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 69 hedge fund portfolios held Costco Wholesale Corporation (NASDAQ:COST) at the end of the third quarter, and 64 in the previous quarter.

We discussed Costco Wholesale Corporation (NASDAQ:COST) in another article and shared Rowan Street Capital’s views on the company. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

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