5 Best S&P 500 Stocks To Buy According to Ray Dalio’s Bridgewater Associates

In this article, we discuss the 5 best S&P 500 stocks to buy according to Bridgewater Associates. To read the details about the firm’s performance and Q2 bets, go directly to the 11 Best S&P 500 Stocks To Buy according to Bridgewater Associates.

5. Costco Wholesale Corporation (NASDAQ:COST)

Percentage of Bridgewater Associates’ portfolio as of Q2 2023: 2.68%

Number of Hedge Fund Holders: 67

Costco Wholesale Corporation (NASDAQ:COST), more commonly known as Costco, is one of the biggest operators of membership-only warehouses. The company is also the owner and operator of self-service gas stations, pharmacies, food courts, and more.

On October 5, Telsey Advisory raised the price target on Costco Wholesale Corporation (NASDAQ:COST) stock to $600 from $575 and kept an Outperform rating. The analyst made a note of the company’s comp sales growth in September and the 4.9% total traffic increase in the research note.

On November 1, Costco Wholesale Corporation (NASDAQ:COST) reported that October net sales grew 4.5% YoY to $18.53 billion, up from $17.73 billion. The company’s total comparable sales also increased by 3%.

In the last three months, 24 Wall Street analysts covered Costco Wholesale Corporation (NASDAQ:COST) with an average price target of $600.22. Out of the 24 analysts, 18 keep a Buy rating on the stock.

Cooper Investors mentioned Costco Wholesale Corporation (NASDAQ:COST) in its third quarter 2023 investor letter. Here is what it said:

“With the market rally in the first half of 2023 driving double digit returns we took the opportunity early in the quarter to reassess Value Latency embedded in the portfolio. The spotlight was on more highly valued stocks that represent some of our longest held positions and among the better performers over the years. The outcome is that we have exited several long-term positions at what we consider attractive prices, where the balance of Risk Adjusted Value Latency was no longer in our favour.

We remain admirers of these businesses and they remain on our watchlist, but the reality is their appeal is widely recognised today. Management have executed well on earnings growth, but returns have also come from substantial multiple re-ratings that we see as unlikely to reoccur from today’s higher base.

Costco Wholesale Corporation (NASDAQ:COST) was acquired in March 2015 at ~$150 and has more than tripled over its holding period to ~$550 today, delivering a total return with dividends reinvested of ~330% in USD or IRR of 20%. Over the journey the multiple re-rated from 25 times to ~35 times.”