In the latest installment of Yahoo Finance's Good Buy or Goodbye, Julie Hyman is joined by Wall Street Alliance Group Partner Aadil Zaman to discuss his stock picks to buy and avoid in the home improvement sector. As a potential buy, Zaman spotlights Costco (COST), arguing that "Costco's customers aren't going anywhere" given its loyal membership base and "recession resilient" low-cost model. Despite e-commerce trends, he says Costco proves "a brick-and-mortar retailer can not only survive, but also thrive." With renewals in the 90th percentile, Zaman sees limited consumer defections, though notes risks if Costco raises membership fees for the first time since 2017. Additionally, its dividend strategy allows flexibility to "time the dividend for when it makes the most sense." Conversely, Zaman names RH (RH) as a stock to avoid, calling it the "Costco opposite" with its luxury furnishings reliant on home sales - now falling with high rates keeping homeowners "staying put." With consumers cautious, he says few look to splurge on luxury furniture. He also points out that Berkshire Hathaway exited its entire RH stake, which could be a signal of wider concerns. You can find more of Good Buy or Goodbye here, or watch this full episode of Yahoo Finance Live here. Editor's note: This article was written by Angel Smith

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