Many investors have a list of stocks they are watching. Some may be stocks that are already in the portfolio and can be added to, and others may be stocks to keep an eye on for future additions to the portfolio. Tracking potential stock purchases can help investors make more informed decisions and keep an eye on important news.
Here are three stocks that I think are a buy right now and should be on every investor's list of potential investments. Each of them has strong historical results and a bright future. Let's see which companies top my list.
Costco
If you've ever had the experience of navigating a crowd Costco Wholesale (NASDAQ: COST) parking space to enter the store, you have experienced why the company has grown into the third largest retailer in the world. Costco's membership fee business model was unique when it started, but has been a driving force behind the company's results for decades. Over the past 12 months, Costco has raked in nearly $5 billion in membership fees.
Costco has also proven to be resilient to slowing economic conditions. While we may not be in a recession, inflation has caused people to cut back on spending, if only a little. To the extent that that's the case, Costco hasn't felt it. In its second fiscal quarter, which ended in February, Costco reported sales in the same store growth of 5.6% and a 5.3% increase in traffic. Costco's value proposition is clear to its members, who renew at a rate of over 90%.
Amazon
For those who don't pay attention Amazon'S (NASDAQ: AMZN) stocks in recent years, it may come as a surprise that in 2022 it traded at its lowest price since early 2019. This was due to significant operating losses in the e-commerce business due to distribution footprint expenditures needed to meet pandemic-driven demand. The improvement over the past year has been impressive.
In the fourth quarter of 2022, Amazon reported an operating loss of $240 million in its North American segment (which is essentially its e-commerce business in North America) and an operating loss of $2.2 billion in its International segment ( which is essentially the e-commerce business in North America). commercial activities outside North America). In the fourth quarter of 2023, these improved to one operating income of $6.6 billion in North America and an operating loss of $419 million in the international segment.
These figures are the result of a concerted effort to properly value the company emerging from the height of the pandemic. This improvement in operating results led to net income improving by more than $10 billion and free cash flow increasing by almost $50 billion.
Coupang
When you read about the Korean e-commerce giant Coupang (NYSE: CPNG), you'd be forgiven for assuming you're reading about Amazon instead. Coming straight out of the Amazon playbook, Coupang has become a formidable e-commerce player on the Korean Peninsula and has recently expanded abroad, most notably into Taiwan.
In the fourth quarter of 2023, Coupang reported that its active customers grew 16% year over year to 21 million. Like Amazon's Prime offering, Coupang has a membership program called Rocket WOW that includes free shipping, free returns, and sunrise and same-day delivery. WOW member growth was 27% in the fourth quarter, which exceeds overall membership growth and demonstrates the popularity and value proposition of the Rocket WOW program.
Coupang is also starting to see economies of scale as it grows. In the fourth quarter of 2023, operating revenues were $473 million, a substantial improvement from the operating loss of $112 million in the fourth quarter of 2022. Free cash flow followed a similar trajectory, growing approximately $2 billion year over year.
Should You Invest $1,000 in Costco Wholesale Now?
Before you buy shares in Costco Wholesale, consider the following:
The Motley Fool stock advisor The analyst team has just identified what they think is the 10 best stocks for investors to buy now… and Costco Wholesale wasn't one of them. The ten stocks that survived the cut could deliver monster returns in the coming years.
Think about when Nvidia made this list on April 15, 2005… if you had $1,000 invested at the time of our recommendation, you would have $537,557!*
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jeff Santoro has positions in Amazon, Costco Wholesale and Coupang. The Motley Fool holds and recommends positions in Amazon, Costco Wholesale, and Coupang. The Motley Fool has one disclosure policy.
My 3 favorite stocks to buy now was originally published by The Motley Fool
