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Better Buy: Costco vs. GameStop


It doesn't seem like a fair fight. Pitting Costco Wholesale (NASDAQ: COST) against GameStop (NYSE: GME) seems to have all the makings of a financial blowout. Costco is a rock star warehouse club operator with a future that brightens with every passing year. GameStop is a struggling small-box retailer clinging to fading remnants of the physical distribution of video games. 

However, pull up the stock charts and things start to get interesting. Costco has been a steady producer, and its 30% year-to-date gain is trouncing the market's 12% climb in 2020. GameStop's performance puts both of those measuring sticks to shame. GameStop shares have nearly doubled this year, up 98% through Monday's close. GameStop stock has more than quadrupled since its springtime bottom. Suddenly this bout of two very different retail chains gets a lot more interesting. 

Image source: Getty Images.

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Source Fool.com

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