5 Best Hard Landing Stocks to Buy Now

2. Costco Wholesale Corporation (NASDAQ:COST)

Number of Hedge Fund Holders: 61

Costco Wholesale Corporation (NASDAQ:COST) is an American retailer that offers branded and private-label products in multiple merchandise categories. Demand for groceries and household products does not wane despite economic pressures, which makes Costco Wholesale Corporation (NASDAQ:COST) one of the safest hard landing stocks to buy. 

On June 9, ​​Atlantic Equities analyst Daniela Nedialkova said Costco Wholesale Corporation (NASDAQ:COST) delivers “strong comp momentum”, which should be sufficient to negate gross margin headwinds. According to the analyst, Costco Wholesale Corporation (NASDAQ:COST)’s “unique” business model, the steadiness of its membership revenue, and the higher-income customer base makes it more robust in the face of inflationary challenges. The analyst expects the retail sector to remain highly volatile in the short-term and would use any pullback in Costco Wholesale Corporation (NASDAQ:COST) stock as a chance to strengthen positions. She reiterated an Overweight rating on the shares with a $615 price target.

Among the hedge funds tracked by Insider Monkey, 61 funds were bullish on Costco Wholesale Corporation (NASDAQ:COST) at the end of Q1 2022, up from 57 funds in the preceding quarter. Fisher Asset Management is the largest shareholder of the company, with 4.2 million shares worth $2.4 billion. 

Here is what ClearBridge Investments Sustainability Leaders Strategy has to say about Costco Wholesale Corporation (NASDAQ:COST) in its Q4 2021 investor letter:

“Portfolio gains were led by a diverse group of contributors. Also in consumer discretionary, Costco, which operates a chain of membership-only big-box retail stores, continues to impress as it takes to share and becomes more relevant for the consumer even as the world opens up.”