03:48 PM EDT, 08/27/2024 (MT Newswires) -- Costco Wholesale's ( COST ) in-store "treasure hunt" strategy of continuously shifting the location of items around the warehouse is improving with better apparel brands and a stronger selection of discounted gift cards in store, Oppenheimer said in a note Tuesday.

"In a mixed discretionary backdrop lately, we believe this has contributed to a meaningful improvement in non-foods category trends and the company's standout performance," Oppenheimer said, adding that it expects this momentum to continue throughout the year.

New displays include DoorDash ( DASH ) , Instacart (CART), and Uber Technologies ( UBER ) gift cards valued at $100 but selling for $79.99 in store, Oppenheimer said. "Consistent with our playbook lately, for longer-term players, we would continue to take advantage of any dips," it added.

Costco is increasingly showcasing a wider selection of popular brands across clothing, electronics, and household items, positioning itself to capitalize as other US retailers face challenges, Oppenheimer said.

Oppenheimer has an outperform rating on Costco with a price target of $925.

Price: 905.47, Change: +12.96, Percent Change: +1.45