Chewy and Costco: Stocks Worth Holding for Long-Term Growth

Investors should consider Chewy and Costco for long-term holdings. With strong customer loyalty and innovative revenue streams, both companies are well positioned for future growth.

Date: 17-02-2025

AI Rating: 7

Investment Prospects
In the current analysis, two stocks have been highlighted: Chewy and Costco, both exhibiting characteristics that suggest they are good long-term investment options due to favorable business practices and growth potential.

Chewy (NYSE: CHWY)
Chewy denotes a company with significant customer loyalty, demonstrated by its Autoship service, which covers 80% of its sales. The revenue growth and recent international expansion into Canada indicate a positive trend in customer engagement and market reach. Chewy has reported growing revenue and has achieved profitability, which suggests a strong financial position that can attract investors looking for stable returns.

Costco Wholesale (NASDAQ: COST)
Costco shows resilience in its business model, primarily relying on membership fees, which creates a high-margin revenue stream. The reported renewal rate of over 90% highlights customer satisfaction and loyalty, generating predictable income. Moreover, Costco's appeal during economic downturns reinforces its market stability and attractiveness as an investment opportunity.

Stocks: CHWY COST