Better Buy: Costco Wholesale vs. Kroger
Consumers are looking to save money on essentials today, and that behavior is putting a new spotlight on price leaders like Costco Wholesale (NASDAQ: COST) and Kroger (NYSE: KR). These retailers tend to perform well during inflationary times since they offer a good mix of value-based staples and more indulgent purchases. Both companies have a huge, engaged shopper base, too, which helps explain why their stocks are beating the market so far in 2022.
But which one is the better buy going forward? Kroger is much cheaper, while Costco promises more stable earnings. Let's take a closer look at the key differences between the stocks.
Their latest sales trends illustrate why Wall Street has favored these stocks in a down market in 2022. Kroger said in early September that second-quarter comparable-store sales rose 6%, which was good enough to convince management to raise its 2022 outlook.
Source Fool.com
