10 Best Department Store Stocks to Invest in

2. Costco Wholesale Corporation (NASDAQ:COST)

Number of Hedge Fund Holders: 96

Costco Wholesale Corporation (NASDAQ:COST) operates membership-only big box warehouse club stores and is one of the most popular department stores in the US. It offers its customers an extensive collection of value furniture, electronics, clothing, consumables, and more. Costco Wholesale Corporation (NASDAQ:COST) is one of the most resilient retailers in the sector, and its membership fees are pivotal to its profit generation. In fiscal 2024, the company made $4.8 billion in membership fees. It recently increased its base membership fee to $65, which will be reflected in the current fiscal year’s earnings. Its paid members have also grown by 7% annually over the last two years.

Despite weakening consumer sentiment and inflation, Costco Wholesale Corporation (NASDAQ:COST) delivered strong comparable sales in fiscal Q2 2025, rising 9.1% (excluding fuel prices and currency exchange) and reflecting strong demand for its offerings. The company’s e-commerce sales also grew by 22.2%, demonstrating strong consumer appetite.

Costco Wholesale Corporation (NASDAQ:COST) is also continually expanding its operations, ending fiscal Q2 2025 with 897 warehouses. It added 29 stores last year, expanding its store base by roughly 3%. On March 21, Stifel Nicolaus analyst Mark Astrachan maintained a Buy rating on the company and set a price target of $1,035.00. It ranks second on our list of the best department store stocks to invest in.