10 Best Fundamental Stocks to Invest In

8) Costco Wholesale Corporation (NASDAQ:COST)

10-Year Revenue Growth Rate: ~8.4%

10-Year Net Income Growth Rate: ~13.6%

Number of Hedge Fund Holdings: 71

Costco Wholesale Corporation (NASDAQ:COST) is engaged in the operation of membership warehouses in the US, Puerto Rico, Canada, Mexico, Japan, the UK, Korea, Australia, Taiwan, China, Spain, France, Iceland, NZ, and Sweden.

Costco Wholesale Corporation (NASDAQ:COST)’s long-term growth trajectory is expected to be aided by its cost advantage and intangible assets.

The company has been expanding its digital capabilities, which include partnerships with platforms such as Uber. Such initiatives form part of Costco Wholesale Corporation (NASDAQ:COST)’s broader strategy to enhance omnichannel presence and cater to changing consumer preferences. The company’s digital enhancements offer a significant opportunity for long-term growth. The expansion of Costco Wholesale Corporation (NASDAQ:COST)’s e-commerce platform offers additional revenue streams and strengthens its competitive position.

The membership trends should continue to form the basis of the company’s business model. Its membership model demonstrates a strong connection with its customer base. It also offers a solid foundation for sustained growth and profitability. The high renewal rates and steady membership growth exhibit customer loyalty and a recurring revenue stream which should insulate the company from short-term economic fluctuations.

Moreover, the company’s continued investment in e-commerce capabilities offers significant growth opportunities. The expansion of digital initiatives, such as partnerships with delivery services and enhanced online offerings, places Costco Wholesale Corporation (NASDAQ:COST) to tap larger share of the growing e-commerce market. Parnassus Investments, an investment management company, released Q2 2024 investor letter. Here is what the fund said:

“Costco Wholesale Corporation (NASDAQ:COST) posted strong results for the third quarter of fiscal 2024, with a robust increase in net sales and strength in both U.S. and international markets. Bucking the trend of weakening demand for discretionary items that has pressured many other retailers, Costco reported growth in nonfood sales.”