Top 5 Retail Stocks to Buy Now

4. Costco Wholesale Corporation (NASDAQ:COST)

Hedge fund ownership of Costco Wholesale Corporation (NASDAQ:COST) has surged by 83% since the middle of 2019 as the membership-based operator of warehouse clubs continues to excel even in the face of intense e-commerce competition for consumer dollars.

Costco is another retailer that’s been in big demand during the pandemic given the vast array of products it carries under one (giant) roof and the ability for consumers to stockpile goods at discount prices. Costco grew sales by 17% during its fiscal Q1 ended November 30, while earnings per share for its fiscal 2020 jumped by 20% to $9.85.

The company had a record quarter for membership renewals at nearly 91% during its latest fiscal quarter and even grew its online sales by 70.9% year-over-year in November. COST shares have been on a good run for several years and are expensive from a historical standpoint however, trading at 37x earnings and nearly 11x book value.