Costco Wholesale Corporation (COST)

Consumer staple names have fallen off, with trades into cyclicals. Tough to own WMT given the valuation relative to what the growth rates are. You're paying 24x PE for 5-6% growth rate, a bit pricey. Prefers Costco in this space; not cheap, but growth rate is better. COST is doing things well in the e-commerce space.

E-commerce will continue to be a trend this year with Covid; it's here to stay. This will be the year of Walmart and Costco, both of which were crushed today, but that means a buying opportunity.

He ranks Walmart ahead of Costco, since Walmart is reinventing themselves in e-commerce and healthcare. Has greatly benefitted a lot ffrom the lockdown, but that tailwind won't repeat in 2021. Valuation is now high, in the 30s. Take some profits here and hold onto the rest.

WMT-N vs. COST-Q. Both names are core consumer staples companies. WMT-N has done a good job of transitioning to e-commence. COST-Q have this membership fee and every time they raise it, it all falls to the bottom line. She would prefer WMT-N because the multiple is lower, but would buy either one of them.

It reported great numbers yesterday. New customers will stick with them after Covid. Analysts keep underestimating the staying power of these Covid stocks. The stock went down after strong earnings, because analysts are skeptical about the duration of the pandemic. Memberships rise 5% annually. They have excellent managers who pay their staff well. With colder weather, their patio heaters will sell well, he predicts, because Costco sells it cheaper than Amazon. Let's face it: America has royally screwed up controlling the virus, so expects these Covid stocks to endure.

COST vs. WMT vs. AMZN Good management team, good long-term grower. Strategic, smart decisions. Walmart just jumps around too much. They should stick to their knitting, but instead management is always trying to play catch up in different arenas. But, quite frankly, the one to own in this space is Amazon.