Hedgeye CEO Keith McCullough is adding Costco (COST) to the long side of Investing Ideas. Below is a brief note.
In addition to CHWY (see our longer-term Investing Ideas product for details) having a nice ramp today, Retail analyst Brian McGough still likes Costco (COST) and it is for sale today.
I know I'm the crazy contrarian Canadian guy now because I still wait to buy things on sale... but I've been called worse.
Here's a summary excerpt on COST from McGough's Institutional Research:
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"Our restaurant team, led by Howard Penney, has been clear about the spending on food at home reversing years of share loss to restaurants – a trend that will likely extend far beyond a single quarter of pantry stocking. With approximately 54% of COST’s sales coming from food this creates a significant tailwind that does not appear to be represented in consensus estimates." |
Buy the damn dip,
KM
