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Grace Capital's Catherine Faddis Is Bullish On Costco

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Grace Capital's Catherine Faddis Is Bullish On Costco

On CNBC's "Fast Money," Catherine Faddis of Grace Capital said she is a big fan of Costco Wholesale Corporation (NASDAQ: COST). The company is not a traditional retailer because it makes money from the membership fees and not from its products, explained Faddis.

She thinks Amazon.com, Inc. (NASDAQ: AMZN) is not a threat to Costco and they can coexist. A half of Costco members are also members on Amazon Prime, said Faddis.

She sees the warehouse format as a huge advantage for Costco because wider aisles are perfect for social distancing. Environmental, social and governance story is great as the company honored all the commitments to the vendors despite the COVID-19, said Faddis.

She also likes Costco's valuation because it has lagged the retail ETF. Faddis sees more room to grow for the stock. She is also not worried about competition from Walmart because they have coexisted for years.

 

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