Shares of Costco Wholesale competitor BJ's Wholesale Club Holdings (NYSE: BJ) jumped 7.6% in afternoon trading Thursday after the company beat analyst projections for its fiscal second-quarter 2022 sales and earnings.
Since the start of the year, Costco Wholesale (NASDAQ: COST) and Apple (NASDAQ: AAPL) have seen their stock prices drop by about 3.9% and 2.5%, respectively, and that's after regaining some ground over the past month. Costco Wholesale has had a lot of success over the years by executing a simple concept: providing a range of high-quality goods and services at low unit prices. With renewal rates hovering around 90% for years, it has garnered a loyal membership base, too.
With that said, if you've got $1,000 to invest, then you'll want to take a serious look at Costco Wholesale (NASDAQ: COST). The average mark-up at Costco is 11%, while it can be substantially higher at other major retailers. Because of its massive scale, with trailing 12-month revenue of $218 billion, Costco is able to flex its tremendous bargaining power with suppliers to get favorable pricing on merchandise.