8 Best Consumer Staples Stocks To Buy Right Now

2. Costco Wholesale Corporation (NASDAQ:COST)  

Number of Hedge Fund Investors: 71

Costco Wholesale Corporation (NASDAQ:COST) is a multinational retailer known for its membership-based warehouse clubs. The company has built a loyal customer base by providing quality products at lower prices through its unique membership model.

On September 26, Costco Wholesale Corporation (NASDAQ:COST) reported results for the fourth quarter, and fiscal year 2024 ended on September 1. The company’s net sales for the fourth quarter reached $78.2 billion, a 1% increase compared to the same period last year, while net sales for the fiscal year reached $249.6 billion, a 5% increase from $237.7 billion the previous year. The company’s e-commerce sales were particularly impressive, with an 18.9% increase for the fourth quarter and a 16.1% increase for the fiscal year. Costco Wholesale Corporation’s (NASDAQ:COST) e-commerce sales have been growing rapidly, and this trend is expected to continue as more customers turn to online shopping.

Costco Wholesale Corporation’s (NASDAQ:COST) net income for the fourth quarter was $2.35 billion, compared to $2.16 billion, in the same quarter last year. For the fiscal year, net income was $7.36 billion, compared to $6.29 billion in the previous year. The company’s membership-based business model, which provides customers with access to a wide range of products and services at discounted prices, continues to drive sales growth and customer loyalty. As of September 26, Costco Wholesale Corporation (NASDAQ:COST) has 76.2 million paid household members, up 7.3% compared to the prior year.

This loyalty is a key driver of the company’s profitability, as membership fees are a significant contributor to the company’s revenue. Furthermore, the company’s membership base provides a stable source of recurring revenue, which helps to reduce the company’s dependence on volatile retail sales.