Costco Wholesale Corporation is underperforming the market this year, down 7 percent since January.
Ernesto Ramos, head of equities at BMO Global Asset Management, tells CNBC's "Power Lunch" on Tuesday he's bullish on the stock at these levels.
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"Costco is now the second-largest retailer in the world behind Wal-Mart, with $116 billion in sales for fiscal 2015 from nearly 700 warehouse clubs. Its distinctive business model generates consistently strong financial performance," Ramos said.
He believes the outlook is positive for the retailer.
"In 2016, Costco, whose stock has been 14 percent less volatile than the S&P 500 over the past three years with a beta of 0.86, plans to open 32 new warehouses and continue expansion abroad in other countries including Japan and Spain," Ramos said.
Costco and Wal-Mart are higher during trading.