The stupendous rise of the Nasdaq Composite by 97% in the last five years and an awe-inspiring 286% over the past decade illuminates the endurance of long-term stock investing. Begetting countless millionaires, stocks within this index are poised to perpetuate this trend as technological and retail landscapes evolve.
Amidst this backdrop, Costco (NASDAQ: COST) and Apple (NASDAQ: AAPL) emerge as compelling investment prospects. When juxtaposed against the Nasdaq Composite, they have exhibited superior performance since 2019.
Costco: The Unlikely Hero
In an unexpected turn, Costco, a retail juggernaut, has mirrored the growth trajectory akin to a tech titan in recent years.
Illustrating this prowess, the comparative chart showcases Costco’s shares outshining retail giants like Amazon, Walmart, and Target over the past half-decade.
Global embrace of Costco’s wholesale model, entwined with an annual membership offering access to unparalleled prices, underpins its stronghold. Evidenced by a stellar 93% membership renewal in the U.S. and Canada, and 91% worldwide.
Further unfolding its narrative, Costco’s footprint on the international stage reveals an unfinished canvas. With a presence in 14 countries across 876 stores, a significant number of these nations boast a mere handful of outlets, illuminating boundless expansion opportunities.
Since 2019, Costco has painted a remarkable picture with a 71% surge in annual revenue and a corresponding 59% uptick in operating income, setting a promising trajectory for future growth.
Bolstering this favorable outlook is Costco’s price-to-sales ratio (P/S) hovering slightly over 1, positioning it as a prudent investment opportunity amidst an alluring valuation.
Apple: The Iconic Maestro
An embodiment of consumer loyalty, Apple commands dominion over the consumer technology sphere, reigning supreme in categories encompassing smartphones, headphones, and smartwatches.
Magnate Warren Buffett succinctly captured Apple’s allure, proclaiming that abandoning an iPhone for $10,000 would be an inconceivable trade-off. A sentiment echoed by millions who have stood by Apple through the generational evolution of its products and services.
Apple’s orchestrated ecosystem binds consumers through an interwoven tapestry of devices and exclusive apps, fostering unparalleled stickiness that transcends competition.
The saga of Apple unfurls with a 47% uptick in annual revenue over the previous five years, complemented by a robust 79% surge in operating income. Noteworthy is its formidable free cash flow, surpassing $107 billion last year, eclipsing rivals such as Microsoft, Alphabet, and Amazon.
Despite recent hiccups, Apple’s foray into services remains a shining beacon. Its expansion into the AI domain, exemplified by the recent announcement of Mac lineup overhaul for enhanced AI capabilities, underpins a growth trajectory brimming with promise.
A visual testament to Apple’s allure is its enticing price-to-free cash flow vis-à-vis key rivals, affirming it as a value-rich stalwart in the competitive landscape.
Apple, a catalyst for millionaire creation, projects an enduring legacy of wealth generation.
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