Retirement Stock Portfolio: 10 Consumer Stocks To Buy

2. Costco Wholesale Corporation (NASDAQ:COST)

Dividend Yield: 0.50%

Number of Hedge Fund Holders: 75

Costco Wholesale Corporation (NASDAQ:COST) operates a membership-based warehouse club chain, offering bulk pricing on products ranging from groceries and electronics to household goods.

The company demonstrated strong financial performance in Q4 2024, with revenue rising 1% year-over-year to $79.7 billion and net income growing 9% to $2.354 billion. E-commerce comparable sales surged by 18.9%, and after adjustments, growth was even more robust at 19.5%. Costco Wholesale Corporation (NASDAQ:COST) continues to expand its digital footprint through initiatives like its partnership with Uber, now available in 17 U.S. states and Canada, enhancing customer convenience and reach.

Tigress Financial Partners reiterated a Buy rating on Costco Wholesale Corporation (NASDAQ:COST) shares and raised the price target to $1,065. The firm emphasized Costco’s ability to deliver above-average Return on Capital and increasing Economic Profit as drivers of long-term shareholder value. With a 12-month price target of $1,065, Tigress projects a total return potential, including dividends, exceeding 20% from current levels.

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.”