Costco, Missing Shoppers, Can't Get a 'Buy'

As the recession prompts shoppers to abandon traditional department stores and pricey boutiques in favor of wholesale clubs and discount retailers, a major player still finds its stock one notch short of a "buy" from TheStreet.com Ratings.

Costco(COST Quote) gets an overall grade of C-plus from TheStreet.com Ratings model. Wal-Mart(WMT Quote), BJ's Wholesale Club(BJ Quote) and PriceSmart(PSMT Quote), meanwhile, are recommended as "buys" with overall grades in the "B" range.

TheStreet.com Ratings model determined Costco's "hold" status by quantitatively weighing the firm's valuation metrics, current financial situation and analysts' consensus expectations of future growth. The firm's "risk grade" of a cautious D-plus pulled its overall grade into the "C" range, which equates with a "hold" recommendation. ...