10 Best Grocery Stocks To Invest In Now

2. Costco Wholesale Corporation (NASDAQ:COST)

Number of Hedge Fund Holders: 71

Costco Wholesale Corporation (NASDAQ:COST) operates a membership-only chain of warehouse club stores, offering bulk pricing on a wide range of products, including groceries, electronics, and household goods.

On October 17, Tigress Financial Partners reiterated its Buy rating for Costco Wholesale Corporation (NASDAQ:COST), raising the stock’s price target to $1,065. The firm cited Costco’s steady in-store traffic and growing e-commerce presence as key drivers of its positive outlook. Costco’s unique shopping experience and expanding footprint, both in the U.S. and internationally, are expected to sustain long-term shareholder value.

Costco’s financial performance remains strong, with Q4 2024 results showing a 9% increase in net income to $2.354 billion and a 1% rise in net sales to $78.2 billion. Comparable sales grew by 5.4% overall, including 5.3% in the U.S., 5.5% in Canada, and 5.7% in other international regions, while e-commerce sales surged by 18.9%, and September’s net sales rose by 9% to $24.62 billion.

Costco’s e-commerce segment in particular, has made significant strides. The retailer continues to grow its digital offerings, including partnerships with platforms like Uber, now available across 17 U.S. states and Canada, broadening its reach and customer convenience.

Parnassus Core Equity Fund stated the following regarding Costco Wholesale Corporation (NASDAQ:COST) in its Q2 2024 investor letter:

“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.”