Investing in the retail sector can be risky due to changing consumer trends and company performance. Costco (NASDAQ: COST) has maintained high membership renewal rates and steady growth. In contrast, Kohl’s (NYSE: KSS) has struggled with declining sales and profits, making a turnaround uncertain. Costco’s success reflects in its stock price, up 203.8% in 5 years, while Kohl’s shares have dropped over 55%. Costco’s P/E ratio is 56, higher than the S&P 500’s 30, indicating growth potential. Kohl’s stock has a P/E of 9, reflecting its challenges. Costco seems like the better investment choice as it continues to execute well and expand, while Kohl’s faces uncertainty and a lack of stable leadership. Costco’s success makes it a more attractive investment despite its higher valuation. Consider joining the Motley Fool Stock Advisor team for insights on the best stocks to buy now, excluding Costco. Their past recommendations have shown impressive returns, outperforming the S&P 500 significantly. John Mackey, former CEO of Whole Foods Market, is a board member of the Motley Fool, and they have positions in Amazon and Costco Wholesale.

Read more at Nasdaq: Best Stock to Buy Right Now: Costco vs. Kohl’s