Costco added to best idea list at Bank of America
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Costco Wholesale Corp. (NASDAQ:COST) is expected to continue attracting consumers feeling the weight of inflation, aiding share growth, according to Bank of America.

âWe expect high food inflation to drive continued share gains for the warehouse club channel (including Costco) given the strong value proposition and price positioning on overlapping SKUs vs. mass and traditional grocery,â the bankâs analysts said. 

The analysts added that the wholesale retailer is likely to expand its footprint to meet the soaring demand. Additionally, the companyâs bottom line is expected to benefit from the opportunity to raise membership prices.

âWe believe Costco is due for an increase in its membership fee in 2023 given its historical cadence of every 5-6 years and its last increase in June 2017, though continued sales momentum and elevated food inflation could push back the timing,â the analysts concluded.

The stock was added to the bankâs US 1 list, which it defines as âa collection of our best investment ideas that are drawn from the universe of âBuyâ rated US listed stocks.â
Read more on Walmartâs move to raise Samâs Club membership prices.