Analysis: COST

It's tough day for Action Alerts PLUS holding Costco (COST)  after the company posted relatively good, but disappointing November sales numbers. But as we know, Costco is a premier retailer and is one of the few names that trades at a bigger multiple than its peers. That means if the company does well it may not be good enough, and today's big selloff is further evidence of that.

The comps were tough, but with a flourish of retailer sales we believe Costco is hanging in there strong. It is a good relative outperformer, and after the holidays are finished we could see a nice rebound in their sales and the stock price.

Monthly sales for Costco were up 4.6%. Many retailers would die for those numbers in a slowing economy and higher rate environment.

So, as we hinted at earlier in today's Daily Rundown, we'll pick up some shares of Costco on the move lower, taking advantage of the decline as those sellers will likely end up buying shares higher down the road.

After you receive this Alert, we will buy 17 shares of Costco at or near $506 per share.

Following the trade, COST will account for roughly 3.75% of the portfolio.