Ken Fisher Loves These 5 Defensive Stocks

4. Costco Wholesale Corporation (NASDAQ:COST)

Fisher Asset Management’s Stake Value: $2.43 billion

Percentage of Fisher Asset Management’s Portfolio: 1.43%

Number of Hedge Fund Holders: 61

Costco Wholesale Corporation (NASDAQ:COST) is one of the world’s largest retailers, with 831 warehouses across 13 countries. The company swiftly returned from the pandemic decline and closed the fiscal year 2021 with around $5 billion in net income. Even with the four-decade high inflation, Costco Wholesale Corporation (NASDAQ:COST) saw a 91% renewal rate for its members. In 2021, the company delivered a 52% shareholder return.

As of August 2021, Costco Wholesale Corporation (NASDAQ:COST)’s revenue grew at a compound annual growth rate of 8.2% in the last ten years. It rose from $87.1 billion to $192.1 billion. Moreover, in the same period, the company’s revenue grew at a CAGR of 13.1%, and its stock returned more than 580% to its investors. Costco Wholesale Corporation (NASDAQ:COST) is a defensive bet because of its business model. Even with the inflation, people can’t move away from basic necessities such as consumer staples.

On June 2, Jefferies analyst Corey Tarlowe took over the coverage of Costco Wholesale Corporation (NASDAQ:COST) and raised the company’s price target from $560 to $580. The analyst maintained a Buy rating on the company shares.

Here is what ClearBridge Investments had to say about Costco Wholesale Corporation (NASDAQ:COST) in its fourth-quarter 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.”