My 2 Favorite Stocks Right Now
Despite the market's poor performance in 2022, with the S&P 500 down more than 20%, there are still attractive investment opportunities to take advantage of in this environment. And I strongly suggest prioritizing business quality over anything else right now. This means taking a close look at things like competitive advantages and profitability metrics.
With trailing five-year returns of 202% and 367%, respectively, Costco Wholesale (NASDAQ: COST) and Lululemon Athletica (NASDAQ: LULU) are my two favorite stocks right now. Let's take a closer look.
Costco's massive scale, with fiscal 2022 total revenue of $227 billion, is a key reason for its remarkable success. The business is able to flex its incredible bargaining power with suppliers to negotiate favorable purchasing terms. And these savings are immediately passed on to customers in the form of lower prices at its 839 warehouses. The average markup on Costco merchandise is 11%, while it can be multiples of that at other top retailers.
Source Fool.com
