Q: I am having trouble deciding whether to buy Costco or ATD.A. Which in your opinion is the better of the two and why or would you recommend a half position in each? thanks in advance for your insight
5i Research Answer:
We like both companies, and we think both are high-quality retailers that created tremendous shareholder value over time. We are okay to own both, but given the premium valuation of COST, prospective return from here is may not be great, and we would be more inclined to buy ATD at the current valuation.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in COST.