Investors are Buying These 5 Stocks as New Survey Shows “Dire” Pessimism

In this article, we discuss 5 stocks investors are buying amid “dire” pessimism. If you want to see more stocks in this selection, check out Investors are Buying These 10 Stocks as New Survey Shows “Dire” Pessimism. 

5. Costco Wholesale Corporation (NASDAQ:COST)

Number of Hedge Fund Holders: 61

Costco Wholesale Corporation (NASDAQ:COST) is an American multinational corporation which operates big-box retail stores. Costco Wholesale Corporation (NASDAQ:COST) has consistently raised its annual dividends for the last 19 years and it is on its way to being a dividend aristocrat. On July 27, the company declared a $0.90 per share quarterly dividend, in line with previous. The dividend is payable on August 12, to shareholders of record as of July 29. 

On August 4, Truist analyst Scot Ciccarelli raised the price target on Costco Wholesale Corporation (NASDAQ:COST) to $571 from $543 and kept a Buy rating on the shares after July data revealed that sales jumped 10% on a comparable basis. Costco Wholesale Corporation (NASDAQ:COST)’s “unmatched” value proposition continues to support higher sales trends, and in an increasingly tough economic backdrop, the company’s “extremely competitive” pricing will allow it to gain market share as consumers seek out value, the analyst told investors in a bullish thesis.

According to Insider Monkey’s data, 61 hedge funds reported owning stakes in Costco Wholesale Corporation (NASDAQ:COST) at the end of Q1 2022, up from 57 funds in the prior quarter. Ken Fisher’s Fisher Asset Management held the largest position in the company, with 4.2 million shares worth $2.4 billion. 

Here is what ClearBridge Investments Sustainability Leaders Strategy has 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.”