Cowen likes these two U.S. retailers ahead of quarterly results

Costco Wholesale Corporation (NASDAQ: COST) is scheduled to report its quarterly results on Thursday. Ahead of earnings, Oliver Chen says he’s bullish on the big-box retailer.

Chen’s bull case for Costco stock

The stock’s come down sharply; nearly 30% in less than two months, which, as per the Cowen expert, is a buying opportunity. In an interview with CNBC’s Becky Quick this morning, he said:

The American multinational is expected to report $3.01 of per-share earnings on $51.76 billion in revenue for its fiscal third quarter – a 9.50% and 14.3% year-over-year increase, respectively.

Why Chen likes Ulta Beauty Inc

A common theme in retail earnings this quarter has been the hit from inflationary pressures. Still, Oliver Chen remains “cautiously optimistic” and sees opportunity in certain areas within retail.

Ulta Beauty Inc (NASDAQ: ULTA) is also expected to report its financial results for the first quarter on Thursday. The stock is down more than 20% from its year-to-date high in April.