Better Buy: Costco vs. BJ's Wholesale Stock
The warehouse retailing niche is more popular than ever as consumers look for ways to stretch their inflation-squeezed budgets. This tailwind has helped lift sales to new records for both Costco Wholesale (NASDAQ: COST) and smaller rival BJ's Wholesale Club (NYSE: BJ). Investors have assigned quite different valuations to the two companies, though, potentially making one a better buy right now.
Let's take a closer look at the two successful retailers to see which one would be a better fit for your portfolio today.
Thanks to a pair of late-May operating updates, investors have a clear picture of the growth trends for these businesses. Costco's comparable-store sales were up 4% through early May after accounting for swings in currency exchange rates and gasoline prices. BJ's fared better in its most recent quarter, which ended in late April, with comps rising 6%.
Source Fool.com
