Costco Wholesale Corporation (NASDAQ: COST) is scheduled to report its quarterly results on Thursday. Ahead of earnings, Oliver Chen says he’s bullish on the big-box retailer.
Chen’s bull case for Costco stock
The stock’s come down sharply; nearly 30% in less than two months, which, as per the Cowen expert, is a buying opportunity. In an interview with CNBC’s Becky Quick this morning, he said:
Costco is a very unique retailer that’s a membership model, a fixed-margin model. It had a very nice April in terms of top-line. They’ve done a great job managing costs. So, we’re bullish on Costco stock.
The American multinational is expected to report $3.01 of per-share earnings on $51.76 billion in revenue for its fiscal third quarter – a 9.50% and 14.3% year-over-year increase, respectively.
Why Chen likes Ulta Beauty Inc
A common theme in retail earnings this quarter has been the hit from inflationary pressures. Still, Oliver Chen remains “cautiously optimistic” and sees opportunity in certain areas within retail.
We see a lot of bright spots. We like the beauty category, we like Ulta. We’re also positive on luxury goods such as LVMH – a global business model and U.S. luxury spending is showing great momentum. So, there’s nice opportunities here.
Ulta Beauty Inc (NASDAQ: ULTA) is also expected to report its financial results for the first quarter on Thursday. The stock is down more than 20% from its year-to-date high in April.
The post Cowen likes these two U.S. retailers ahead of quarterly results appeared first on Invezz.
