Better Buy: Costco or BJ's Wholesale Club?
Investors are excited about the potential for the warehouse retailing niche today. That segment delivers steadier sales and earnings growth than more traditional peers thanks to a steady stream of membership income. It can win market share during inflationary times, too, as shoppers become more focused on values.
But which of the bulk shopping giants should you add to your portfolio? Here, we'll stack two attractive options, Costco (NASDAQ: COST) and BJ's Wholesale Club (NYSE: BJ), as potential candidates. Read on for good reasons to add one, or both, of these retail winners to your watch list.
Both stocks are benefiting from the membership retailing model. BJ's revealed in its most recent earnings report that comparable-store sales were up 8% after accounting for gasoline price swings, on top of big gains a year ago. Costco is similarly winning market share, with growth coming in a bit faster at 11% through late July.
Source Fool.com
