Better Buy: Costco vs. Lowe’s

It’s a tough matchup. Costco (NASDAQ:COST) is the king of the warehouse shopping world, edging out Walmart‘s (NYSE:WMT) membership-based venue Sam’s Club. Home-improvement name Lowe’s (NYSE:LOW) may not be as big as rival Home Depot (NYSE:HD), but CEO Marvin Ellison — a former Home Depot executive — is turning up the heat on the company’s competition. Both are perfectly fine holdings for most long-term investors.

If there’s only room for one in your portfolio, there are a couple reasons that Lowe’s is the better buy right now. Let me explain.

Man plotting arrows, one rising faster than others.

Image source: Getty Images.

Why not Costco?

Don’t misread the message. Costco doesn’t face an existential crisis. Even before the COVID-19 pandemic took hold, the retailer was riding high on several years of unfettered growth. The last time it struggled in a big way was during 2008’s fallout of the subprime mortgage meltdown, and even then, it fared

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