#3 - Costco (NASDAQ:COST)
Costo Wholesale Corporation (NASDAQ: COST) is another solid choice if you're looking for a growth stock that doesn't rely on AI. Contrary to recent headlines, Costco isn't relying on its gold bar sales either.
The company has a membership model with a retention rate of well over 90% despite the uncertainty of the last few years. This points to the company's loyal customer base and its ability to grow revenue and earnings despite inflation.
COST stock is up nearly 240% in the last five years. That's a growth rate of approximately 48% per year. That should get growth investors to take notice. Plus, Costco pays a dividend that has been growing for 20 consecutive years. As of this writing, that dividend only offers a modest yield of 0.58%, but you have to account for the fact that the stock trades for nearly $750 per share.
At nearly 50x forward earnings, COST stock isn't cheap, and analysts believe a stock split is not imminent. But this could fall under the category of owning a stock that delivers a lot of value for the price you pay.
About Costco Wholesale
Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. The company offers branded and private-label products in a range of merchandise categories.
Read More - Current Price
- $958.25
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 18 Buy Ratings, 9 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $908.81 (5.2% Downside)
