2 sharply rising stocks that I would buy now without hesitation

The stock market has surged over the past year, with the Nasdaq Composite up more than 27% since last June. This growth is a welcome development after the COVID-19 pandemic and economic downturn of 2022, which saw the same index plunge 33% during this difficult year.

Investors have become optimistic that falling inflation and progress in nascent markets like artificial intelligence (AI) could mean a lucrative future for many companies.

As a leader in the consumer market with billions of loyal users, Costco wholesale (NASDAQ: COST) And Amazon (NASDAQ:AMZN) have promising prospects. Their shares are up 61% and 45%, respectively, over the past 12 months, but appear far from hitting their highs. Costco is expanding rapidly and has barely scratched the surface of its overseas operations. Meanwhile, Amazon’s online retail business is booming alongside heavy investment in AI.

So here are two booming stocks that I would buy right now without hesitation.

1. Costco

Costco has come a long way since its founding 40 years ago, when it opened its first store in San Diego, California. The retail giant has won over consumers around the world with its unique model offering access to wholesale pricing for the price of an annual subscription.

COST table

The company’s success has made it one of the best retail investments of the last five years, outperforming competitors like Amazon, WalmartAnd Target in stock growth. While past gains aren’t always an indication of what’s to come, recent profits suggest a lucrative future for Costco.

The retail giant reported its fiscal third quarter 2024 results on May 30. Revenue for the period ended May 12 jumped 9% year over year to $57 billion. International sales remained the main driver of growth, with overseas revenue up almost 9%, compared to 6% domestically.

Costco memberships grew 8% to more than 74 million in the third quarter, a promising achievement given its global renewal rate is 90%. The company has 878 locations in 14 countries and adds new ones every year.

Costco is on an exciting growth trajectory that you won’t want to miss. And with a price/sales (P/S) ratio of 1.4, the company’s shares offer excellent value and I would buy them without hesitation.

2. Amazon

Amazon has created plenty of bulls over the past year, rallying investors with a booming e-commerce business and a growing role in AI.

Macroeconomic challenges in 2022 have led to a sharp decline in consumer spending, with Amazon’s retail sales particularly hard hit. However, an impressive recovery has proven the reliability of the company’s business model and its value as a long-term investment.

Amazon reported its first quarter 2024 results on April 30. Revenue for the quarter increased 13% year over year, beating analysts’ forecasts of $750 million. However, the most impressive growth came in operating profit, which soared 221% to over $15 billion.

The retail company’s profits have soared over the past year on positive growth…

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