10 Best Roth IRA Stocks to Buy According to Analysts

4. Costco Wholesale Corporation (NASDAQ:COST)

Analysts Upside Potential: 20.29%

Costco Wholesale Corporation (NASDAQ:COST) ranks fourth on our list of the best Roth IRA stocks. The Washington-based retail company remains a favorite among investors. The late Charlie Munger, best known for his partnership with Warren Buffett, was a longtime shareholder and board member. While the retail industry is highly competitive, Costco has established itself as a dominant warehouse club where customers can purchase bulk goods through a membership-based model. The company operates nearly 900 warehouse locations worldwide, with 617 in the US. In the past year, the stock has surged by over 24%.

In its fiscal first quarter of 2025, Costco Wholesale Corporation (NASDAQ:COST) reported $62 billion in revenue, reflecting a 7.5% increase from the previous year. Net income grew to $1.8 billion, up from $1.6 billion in the prior year. The company maintained a strong cash position, ending the quarter with nearly $11 billion in cash and equivalents, an increase from $9.9 billion in the previous quarter. In addition, it generated $3.3 billion in operating cash flow.

Analysts remain positive about Costco Wholesale Corporation (NASDAQ:COST)’s future, highlighting its ability to outpace competitors by steadily growing its market share and benefiting from its retail-as-a-service approach, which provides reliable membership income. The company’s advantage comes from its membership-based pricing and bulk discount model, which has fostered a loyal and growing customer base worldwide, as seen in its most recent quarterly results.

Costco Wholesale Corporation (NASDAQ:COST) is also one of the most reliable dividend payers, having raised its payouts for 20 consecutive years. Its quarterly dividend comes in at $1.16 per share and has a dividend yield of 0.51%, as of March 23.