Wells Fargo’s downgrade of Costco underappreciates the retailer’s value

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Customers carry their items after shopping at Costco in Washington D.C., May 5, 2021.

Ting Shen | Xinhua News Agency | Getty Images

Wells Fargo downgraded Club holding Costco (COST) in a rare move Monday, citing “brewing headwinds” to the wholesale retailer’s growth momentum. We think this call is a mistake and see Costco as a buy here, given the value it continues to offer its customer base amid a deteriorating economy.

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