Costco is a top retail pick at Gabelli Funds
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Costco Wholesale Corporation (NASDAQ:COST) is the top pick for Gabelli Funds in the food retail sector.
Analyst Justin McAuliffe pointed to Costco's (COST) ability to do well in both stronger and weaker macro environments
"Given the macro uncertainty, we find Costcoâs relative advantage in a recessionary environment compelling. As consumers become more price sensitive, Costcoâs significant price gaps to traditional supermarkets drive share gains in grocery and fuel," he noted.
McAuliffe also reminded that Costco (COST) picked up market share gains during the last recession, which proved to be sticky. On the flip side, if the macro environment turns out to be more positive this year, Costco (COST) is tipped to see an acceleration in comparable store sales from some of its more discretionary non-food categories. 
Higher membership fees and a special dividend are also called potential wildcards for Costco (COST) in 2023.
Read the latest breakdowns on Costco (COST) from Seeking Alpha contributors.