UBS Backs Costco to Outperform Regardless of Economic Conditions

Costco Wholesale Corporation (NASDAQ:COST) is one of the best stocks for a retirement stock portfolio.

UBS advises staying invested in Costco, noting the company’s strong performance early in the year and its potential to keep outperforming the broader market regardless of economic conditions.

Analyst Michael Lasser emphasized the importance of Costco Wholesale Corporation (NASDAQ:COST)’s dedicated membership base, which he believes will keep supporting sales growth. He also praised O’Reilly’s expansion into both urban and rural locations, pointing out that this strategy improves the company’s ability to make quick deliveries.

Lasser made the following comment:

“These retailers also should see an accelerated upswing as the backdrop improves. This is because they tend to benefit from periods of disruption and come out stronger on the other side of it. Plus, each of these retailers has unique drivers that can help them succeed in various macro backdrops, driving sustainable sales growth and market share gains.”

Costco Wholesale Corporation (NASDAQ:COST) has surged by nearly 9% since the start of 2025, outperforming the market, which has only returned nearly 2% during this period.

While we acknowledge the potential of COST as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: Dividend Stock Portfolio For Retirement and 10 Unstoppable Dividend Stocks to Buy Now

Disclosure. None.