Better Buy: Costco vs. BJ's Wholesale Club
Both Costco Wholesale (NASDAQ: COST) and BJ's Wholesale Club (NYSE: BJ) stocks are beating the market in 2022, and it isn't hard to see why. Consumers are focused on saving money, and an inflationary environment tends to make the warehouse retailers' value propositions more obvious.
These companies seem ideally positioned to ride out a potential recession, and earnings growth might be especially strong if the economy avoids that scenario. But which one is the better buy heading into 2023?
Both companies are growing at an impressive pace today, with comparable-store sales rising in the mid-single digits on top of booming sales gains a year ago. Their consumer staples focus has allowed Costco and BJ's to avoid the type of challenges that hurt less-diversified retailers like Target and Home Depot. In contrast to these businesses, the wholesale clubs are seeing increased customer traffic and higher average spending.
Source Fool.com
