10 Stocks To Buy Before They Split Next

6. Costco Wholesale Corporation (NASDAQ:COST)

Share Price as of October 18: $884.00

Surge in Share Price in 5 Years: 191.88%

Stock Split Confirmed: no

Number of Hedge Fund Holders: 71

Costco Wholesale Corporation (NASDAQ:COST) is a membership-only big-box retailer that offers a wide variety of products at bulk prices. Membership models allow it to offer lower prices to its members, making it a popular destination for shoppers seeking value and convenience. The product offerings include groceries, electronics, clothing, household goods, and more.

Sales reached $79.7 billion in FQ4 2024, up 0.96% year-over-year. For FY2024, revenue totaled $249.6 billion, representing a 5% increase. The company’s expansion plans remain on track, with 12 more stores scheduled to open by the end of this year.

International sales grew by 5.7%, and e-commerce sales surged by 18.9%. Membership growth also remained steady, with a 7.3% increase in paid household members and a 7% increase in cardholders. Ancillary businesses and digital initiatives significantly grew. Pharmacy sales surged due to increased prescription fills, and optical sales expanded as more members took advantage of eyewear deals. Gas sales, however, declined slightly.

Peloton, the popular fitness equipment company, has recently announced a strategic partnership with Costco Wholesale Corporation (NASDAQ:COST) to sell its Bike+ stationary bikes. Starting November 1 and continuing through February 15, the company will feature the Peloton Bike+ in 300 of its US stores at a discounted price of $1,999 (compared to the regular price of $2,495 on Peloton’s website). Online shoppers can also purchase the Bike+ on Costco’s website for $2,199.

The company has already established partnerships with other major retailers like Amazon and Dick’s Sporting Goods, further demonstrating its commitment to expanding its distribution channels. Resultantly, it presents a compelling investment opportunity.

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.”