People will always buy goods and services, and some corporations have become top choices for individuals. Pinpointing these corporations isn’t hard. You can monitor your own shopping habits for ideas as well as the ways other people spend their money.
While investors can look for hidden gems, buying established consumer stocks can also be a formula for success. These corporations continue to gain market share and have millions of loyal customers. Most people who do business with these companies tend to be customers for life. That’s good news for investors who have shares in these consumer stocks.
Amazon (AMZN)
Amazon (NASDAQ:AMZN) has become one of the most recognizable online marketplaces in the industry. The company has become a mainstay for many consumers since its founding in 1994.
AMZN makes millions of items readily available to customers, and the company offers 1-2 day shipping. It’s more convenient to buy something from the comfort of your home than it is to drive to a nearby store that isn’t guaranteed to have what you need.
The business model continues to work well for Amazon. The tech giant reported 13% year-over-year (YOY) revenue growth and saw its net income more than triple YOY. While Amazon is doing well in e-commerce, that’s far from its only opportunity. Amazon Web Services (AWS) grew by 17% YOY to reach $25.0 billion in revenue. Also, the firm has exposure to artificial intelligence (AI), advertising, groceries and streaming.
Further, Amazon stock is up by 23% year-to-date (YTD) and has more than doubled over the past five years.
Walmart (WMT)
Walmart (NYSE:WMT) owns a vast presence in the retail industry. The corporation has over 10,500 retail units and is a leading grocer. Competing with Amazon in e-commerce, it saw its online sales grow by 21% YOY in Q1 of fiscal year 2025. Also, the company’s global advertising business jumped by 24% YOY. Adjusted earnings per share grew by 22.4% YOY.
In addition, WMT remains committed to returning value to shareholders. Walmart initiated a $1.1 billion stock buyback and distributed a quarterly dividend of $0.2075 per share. That comes to an annualized $0.83 per share which is 9% higher than the same period last year.
Furthermore, the stock has done its part for long-term investors. Up by 22% YTD, it has rallied by 89% over the past five years. Walmart should continue to deliver more gains as the elevated cost of living attracts wealthier consumers. Thus, the firm’s successes in e-commerce and advertising also bode well for future returns.
Costco (COST)
Costco (NASDAQ:COST) has established itself as a top wholesaler for people who want affordable prices for various goods. The company has 876 warehouses globally with most of them located in the U.S.
The stock has been a solid long-term pick. Shares are up by 22% YTD and have soared by 222% over the past five years. Costco’s recent April sales report suggests that the rally will continue. The wholesaler reported 5.6% YOY revenue growth during a four week span in April. And, e-commerce led the way and was 14.6% higher than the same period last year. Sales over the past 35 weeks are up by 5.2% YOY.
Currently, Costco is rated as a moderate buy among 23 analysts. The highest price target is $870 per share, suggesting a 9% upside from current levels. Also, Costco offers a 0.58% yield and am impressive dividend growth rate. The annualized growth rate is 12.65% over the past decade.
On this date of publication, Marc Guberti held a long position in AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
