Traders Share Their Thoughts On Costco And Walmart

Nancy Tengler of Laffer Tengler Investments spoke on CNBC's "Trading Nation" about Costco Wholesale Corporation COST and Walmart Inc WMT.

She thinks both companies are high quality, but she closed her Costco position at the end of the last year because of valuation. She loves the story and the fundamentals, but the valuation got a little bit rich.

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She still has a long position in Walmart and it's one of her largest holdings. She doesn't necessarily think the near-term growth and sales is sustainable, but she loves the e-commerce story. She added it has also gotten a little bit rich so she is trimming back on her position.

Tengler likes both companies, but she wouldn't chase them at current levels. She thinks Walmart's dividend is safe.

Ari Wald of Oppenheimer is bullish on both stocks, but he likes Costco better. Costco has been on his buy list since April 2018 and although it has become overbought in the near term, he still likes it. His focus is on the long-term recovery and Costco has been able to outperform during the market rallies in recent years.

Photo credit: Tony Webster, via Wikimedia Commons