Is Home Depot or Costco the Better Stock to Buy Right Now With $1,000?

From Nasdaq: 2025-05-24 10:30:00

Summary:
Home Depot (NYSE: HD) and Costco (NASDAQ: COST) are both major retailers in the U.S., generating significant annual revenue. Home Depot reported $39.9 billion in revenue for Q1 2025, with struggles in same-store sales due to economic uncertainties. Costco, on the other hand, continues to see positive same-store sales growth and has a strong membership model. While Costco’s stock price has soared in the past five years, it is more expensive than Home Depot’s. Investors looking for quality may prefer Costco, while those prioritizing valuation may favor Home Depot.

In the battle of retail giants Home Depot and Costco, Costco seems to have the edge in long-term growth potential, with a strong membership model and consistent earnings stream. However, Costco’s stock is currently more expensive than Home Depot’s. Investors must consider quality versus valuation when deciding which stock to buy with $1,000.



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