Face-Off on Stocks: Costco, BJ's, Wal-Mart
Retail stocks tend to be early cyclicals, meaning they rise ahead of other sectors in the early stages of economic recovery. That's part of what's driving some impressive results among luxury retails, like the ones we tackled in our previous Face-Off. This time around we're looking into some names at the other end of the dumbbell.
Costco (COST), a national chain with a more affluent customer base, has greatly outperformed the broader market this year, but whether shares are still attractive at current valuations in a matter of debate. The same goes for shares in BJ's (BJ), a regional club, which have jumped about 30% in 2010. And then there's Sam's Club, owned by Wal-Mart (WMT), the empire of always low prices. Unfortunately the same can be said for the price of Wal-Mart's stock, which has lagged behind even the tepid returns of broader market this year.
For more on the bull and bear cases on Costco, BJ's and Wal-Mart, see the video below.