We recently published a list of 10 Best Stocks to Invest in for Long Term. In this article, we are going to take a look at where Costco Wholesale Corporation (NASDAQ:COST) stands against other best stocks to invest in for long term.

The markets have had two monster years with the S&P 500 index surging 24.73% and 24.01% in 2023 and 2024, respectively. Meanwhile, the tech-heavy Nasdaq 100 index increased by a whopping 54.9% and 27.01% during the same periods. This was on the back of an AI boom, which benefitted the stocks of big tech companies. However, policy uncertainties and the risk of a stagflation, where inflation remains high without a significant economic growth, have caused a downtrend in those markets in 2025.

While Risks are Elevated, Opportunities Present Themselves

CNBC recently interviewed Souls’ Dan Greenhaus, Robinhood’s Stephanie Guild, and Invesco’s Brian Levitt. Greenhaus suggested that a lot of the worse-case scenarios have been priced into the market. While he conceded that he still remains cautious, he feels that the effects of the tariffs on inflation may not be as dire as most people think.  This is in line with a Morgan Stanley research which suggested that while the worst may be over, the coast is not clear yet.

However, Stephanie Guild and Brian Levitt are a bit more cautious. Levitt added that he sees uncertainty persisting for longer, which means that volatility is likely to persist. According to Greenhaus, there are times of persistent uncertainty, that cause the risk premium on assets to rise, and present long-term opportunities. However, Levitt pointed out that S&P 500 valuations still remain elevated and are not at prior recession levels. Whereas Guild added that market expectations remain quite high, despite the uncertainty. She said that earnings growth expectations are at 11% and suggested that there is room for earning misses given the risks to the economy, which, in turn, could cause the markets to fall.

While the market is probably going to remain risk-off for a bit, it is likely to offer great discounts on some of the best stocks in the market, sooner or later. Some companies with long runways are already trading at multi-year low levels. Also, these companies with good balance sheets should be able to navigate through a recession, if we were to enter into one, with ease.

Our Methodology

We sifted through the financial media reports to compile a list of the best stocks to invest in for the long-term. We then selected the 10 stocks that were the most popular among elite hedge funds. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A customer in a warehouse aisles, browsing the wide range of branded and private-label products.

Costco Wholesale Corporation (NASDAQ:COST)

Number of Hedge Fund Holders: 96

Costco Wholesale Corporation (NASDAQ:COST) operates membership-based warehouses and e-commerce sites in multiple countries, offering low-priced, high-quality products across various categories. With 890 warehouses worldwide, the company focuses on high sales volumes and quick inventory turnover by purchasing in bulk and using efficient distribution. Costco Wholesale Corporation (NASDAQ:COST) warehouses are typically 147,000 square feet, designed for inventory handling with minimal overhead. It offers membership warehouses and e-commerce sites. It offers its members low prices on some categories, which helps the company produce high sales volumes and rapid inventory turnover.

Costco Wholesale Corporation (NASDAQ:COST) is intending to launch 29 new warehouses in fiscal year 2025, with 17 located in the US and 12 in other countries. Costco reported strong March sales, with total comparable sales up 6.4% and net sales rising 8.6% to $25.51 billion. Membership renewals remain high, helping maintain steady revenue. Executive memberships and digital expansion are fueling profitability. Costco’s solid financials and disciplined operations make it a strong long-term investment. Although the stock commands a premium, its consistent performance and loyal customer base justify investor confidence. Analysts have raised earnings estimates, expecting double-digit growth in the current and the next fiscal year.

Overall, COST ranks 8th on our list of best stocks to invest in for long term. While we acknowledge the growth potential of COST, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than COST but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.