Costco’s (COST) Best-in-Class Merchandising Supports Long-Term Growth, Says UBS

Core Viewpoint - Costco Wholesale Corporation (NASDAQ:COST) is considered one of the best fundamental stocks to buy currently, with UBS maintaining a Buy rating and a price target of $1,205, citing several growth levers that will support the retailer's momentum [1]. Group 1: Market Performance and Sales - Recent market concerns regarding Costco's performance were driven by weaker comparable sales in May and June, leading to doubts about the retailer's valuation [2]. - UBS argues that these concerns were misinterpreted and should have been alleviated by the reacceleration of Costco's comparable sales and traffic in July and August [2]. Group 2: Business Model and Growth Drivers - Costco's "best-in-class merchandising engine" is highlighted as a key factor that will help the company maintain its growth in the coming months and quarters [3]. - As a membership-based warehouse club, Costco offers bulk discounts on a wide range of products, including food, electronics, and household items [3].