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What UBS Sees In Costco That You Don't

Friday, 9 Jul 2010 | 5:43 PM ET

Despite mixed results from retailers, UBS sees a buying opportunity in two wholesale clubs—an analyst gave Costco Wholesale an upgrade to 'buy' from 'neutral' and raised BJ's Wholesale Club's price target Friday.

"Costco, to me, is the best retail story in the world from a long-term point of view," says analyst Neil Currie while on Friday's Fast Money.

Compared to competitor Walmart , Currie admits Costco shares are expensive, so he looks for buying opportunities. Since April, its stock is down more than 9%. He says the Issaquah, Wash.-based company's sales are "robust" and its underlying business strategy enables it to perform in any environment.

Call of the Day
Costco is upgraded following SSS figures, with Neil Currie, UBS analyst.

Watch the video for Currie's complete comments.

What's the Trade?

Patty Edwards of Storehouse Partners is bullish on Costco because "they are the best retailer in class." She thinks Walmart is cheap, but Costco is cheaper.


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Trader disclosure: On July 9, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Terranova owns (GOOG), (AMZN), (MON), (APC),(GMCR), (MYL), (MRVL), (BAC), (ADI), (ADBE), (AKAM), (HES), (CVS), (AXP), (EMC), (ABT); Grasso owns (ASTM), (ABK), (BAC), (BGP), (C), (CSCO), (DYN), (JPM), (LPX), (MO), (NDAQ), (PFE), (PRST)

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Michael Block
***No Disclosures***

Neil Currie
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