From Nasdaq:

The U.S. retail market has soared to over $7 trillion in 2022, and companies like Apple and Costco have seen triple-digit stock growth in the last five years. The two companies operate in different retail areas but have built up immense consumer loyalty. Both have new developments that make them worth considering for investment in 2024.

Apple is the eleventh-largest retailer in the U.S., despite offering a much smaller range of products than most other retailers. The company’s popularity is driven by devices like the iPhone, MacBook, and AirPods, as well as a design language that encourages long-term consumer loyalty.

Despite a 3% revenue dip in fiscal 2023, Apple generated nearly $100 billion in free cash flow. With a booming digital services business and expansions in AI, the company is positioned for a strong future over the next decade.

Costco ranks third on the list of the biggest 100 U.S. retailers. The company’s unique business model and high subscription renewal rate have contributed to consistent growth and profit. Large dividends and an annual subscription fee make Costco’s stock seem like a no-brainer for anyone looking to invest in retail.

Compared to Costco, Apple currently offers more value in its stock, with lower price-to-earnings ratios and price-to-free cash flows. These metrics indicate that Apple’s share price is a bargain compared to Costco’s, and combined with its improving tech market, Apple is the better stock to buy in 2024.

The Motley Fool Stock Advisor analyst team has identified the 10 best stocks for investors, and Apple is not one of them. While Apple may not be on their list, Stock Advisor has returned more than triple the S&P 500 since 2002, suggesting that it’s a reliable source for stock guidance.



Read more: Better Stock to Buy in 2024: Apple vs. Costco