Costco (COST) – Among the 10 Best Long Term Low Risk Stocks to Buy According to Hedge Funds

Vardah Gill

Wed, May 20, 2026 at 7:58 AM EDT 2 min read

Costco Wholesale Corporation (NASDAQ:COST) is included among the 10 Best Long Term Low Risk Stocks to Buy According to Hedge Funds.

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On May 19, Oppenheimer analyst Rupesh Parikh raised the firm’s price target on Costco Wholesale Corporation (NASDAQ:COST) to $1,160 from $1,100 and maintained an Outperform rating ahead of quarterly results. The firm said it continues to rank Costco as a top pick and raised its valuation target despite some near-term concerns. Oppenheimer noted that temporary margin pressure tied to fuel could lead to a modest EPS shortfall in the upcoming quarter. Even with the stock no longer trading at a discount, the firm still sees room for strong outperformance. Oppenheimer believes Costco’s defensive business model and strong value offering across both omni-channel retail and fuel should continue helping the company gain market share at an outsized pace. The firm also said there is still potential for a special dividend and/or a stock split, both of which could act as positive catalysts for the shares.

On May 12, Bernstein raised its price target on Costco to $1,192 from $1,170 and kept an Outperform rating on the stock. Bernstein said the first quarter could show very different outcomes across retailers. The firm believes stimulus tied to the “One Big Beautiful Bill Act” may help boost comparable sales for retailers serving higher-income consumers. At the same time, Bernstein noted that fuel pressure, inflation, and lower social transfers could offset some of those gains and may hurt the quality of results for certain companies.

Costco Wholesale Corporation (NASDAQ:COST) operates membership warehouses and e-commerce platforms offering nationally branded and private-label products across a wide range of categories.

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