5 Best FMCG Stocks to Buy Now

4. Costco Wholesale Corporation (NASDAQ:COST)

Number of Holders: 61

Costco Wholesale Corporation (NASDAQ:COST) is an American multinational corporation and one of the largest retailers in the world. The company operates a chain of membership-only retail stores. Historically, the membership fees have procured more than 60% of the company’s operating profit and Costco Wholesale Corporation (NASDAQ:COST)’s membership renewal rate is over 90%.

On July 14, Deutsche Bank analyst Krisztina Katai upgraded Costco Wholesale Corporation (NASDAQ:COST)’s shares from Hold to Buy and assigned a price target of $579, up from $525. According to the analyst, the company “is one of the most consistent operators in our group, and its steady traffic gains and high membership renewal rates serve as key differentiators in an increasingly uncertain backdrop”. Furthermore, the analyst noted that Costco Wholesale Corporation (NASDAQ:COST) is expected to increase its membership fee, which the company has not done since 2017. 

As of the first quarter of 2022, 61 hedge funds made Costco Wholesale Corporation (NASDAQ:COST) a part of their portfolio, compared to 57 in the prior quarter. Fisher Asset Management was the most prominent stakeholder in the company at the end of Q1, with shares worth $2.4 billion.

Here is what ClearBridge Investments had 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.”