Parikh: Costco offers the best value proposition across retail

Core Viewpoint - Costco is highlighted as a strong investment opportunity due to its affluent customer base and superior value proposition, which has allowed it to maintain consistent strength amidst challenges faced by other retailers [1][2]. Costco - Costco has shown more than a mid-single-digit comparable sales growth on top of a strong gain from the previous year, indicating strong momentum expected to continue through the holiday season [2]. - The company benefits from inflationary pressures as higher-income and middle-income consumers seek value, leading them to Costco for its competitive pricing [4][5]. Competitive Landscape - Walmart is also positioned to perform well in various economic conditions, gaining market share through its value and convenience offerings [8]. - Ulta Beauty is noted for its innovation and strong momentum, particularly in the beauty and wellness sector, where spending remains robust even in challenging economic times [8][9]. Consumer Trends - The consumer spending backdrop is mixed, with limited winners in the current environment, particularly in consumer staples, which are at lows not seen since the late 90s [12]. - Shark Ninja is mentioned as a discretionary consumer durable player with upcoming earnings that may indicate a shift in sales momentum towards Q4 [13].