Costco, Amazon, and Uber are all considered reliable long-term investments for savvy investors.
As the S&P 500 approaches its all-time high and trades at a historically elevated 30 times earnings, it is crucial for investors to exercise caution and selectivity in their stock purchases. While it may be enticing to pursue the market’s high-growth stocks, many of these popular choices could easily lose value during the next significant market downturn. Therefore, focusing on resilient stocks that are designed to endure recessions and challenging bear markets is a more prudent approach.
Here are three of my top stock picks that align with this strategy: Costco (COST +0.60%), Amazon (AMZN +1.64%), and Uber (UBER +0.61%).
Image source: Getty Images.
1. Discover the Resilience and Growth of Costco
Costco, recognized as the world’s largest warehouse club retailer, stands out as a reliable investment for three compelling reasons. Firstly, it effectively utilizes its considerable scale to negotiate favorable prices, allowing it to offer products at attractive bulk discounts that appeal to its customer base.
Secondly, Costco can maintain its operations on remarkably thin profit margins because it derives a significant portion of its profits from its lucrative membership fees, which are a vital component of its business model. This unique approach allows Costco to remain competitive in pricing while ensuring profitability.
Finally, as Costco continues to expand by opening new stores and enhancing its offerings with additional services, its scale and pricing power only improve. This growth strategy not only attracts new customers but also solidifies loyalty among existing members, ensuring the company’s continued success.
Today’s Change
(0.60%) $5.33
Current Price
$898.62
Key Data Points
Market Cap
$398B
Day’s Range
$892.13 – $905.32
52wk Range
$871.71 – $1078.23
Volume
104K
Avg Vol
2.4M
Gross Margin
12.84%
Dividend Yield
0.56%
Costco’s growth trajectory appears strong as it continues to draw in new members, achieve impressive renewal rates, and open new warehouse locations. From fiscal year 2020 to fiscal year 2025, the number of Costco cardholders surged from 105.5 million to 140.6 million, showcasing the brand’s appeal. Additionally, the global renewal rate saw an increase from 88% to 90.5%, highlighting customer satisfaction and loyalty. The expansion of its warehouse count from 795 to 914 further emphasizes Costco’s robust growth strategy.
This momentum remained intact even after the company increased membership fees for the first time in seven years in 2024, signaling strong consumer support for its value propositions. Looking ahead, Costco plans to open an additional 35 warehouses (including five relocations) in fiscal year 2026, indicating a commitment to growth.
Analysts forecast that from fiscal year 2025 to fiscal year 2028, Costco’s revenue and earnings per share (EPS) will grow at a compound annual growth rate (CAGR) of 7% and 20%, respectively. Although its stock is priced at 45 times this year’s earnings, its fundamental strengths justify this premium valuation, making it a worthwhile investment.
2. Explore Amazon’s Dominance in E-Commerce and Cloud Services
Amazon, recognized as the leading global e-commerce and cloud infrastructure powerhouse, boasts three essential strengths that contribute to its market dominance. First, a significant portion of its operating profits comes from the Amazon Web Services (AWS) cloud platform, which serves as a financial backbone, subsidizing the growth of its lower-margin retail operations.
Secondly, the Amazon Prime ecosystem, which has successfully attracted over 240 million subscribers globally, effectively locks in its customers and enhances loyalty compared to competitors. The company is continually increasing the attractiveness of this subscription service through loss-leading discounts and exclusive perks, further entrenching its position in the market.
Lastly, Amazon is expanding its higher-margin advertising business with more promoted listings and integrated ads. This smaller yet increasingly significant revenue stream has the potential to emerge as a second major profit center alongside AWS, contributing to the company’s overall profitability.
Today’s Change
(1.64%) $3.55
Current Price
$220.69
Key Data Points
Market Cap
$2359B
Day’s Range
$215.18 – $222.21
52wk Range
$161.38 – $258.60
Volume
68M
Avg Vol
47M
Gross Margin
50.05%
Dividend Yield
N/A
While Amazon’s core e-commerce business matures, particularly in North America, the company is set to sustain growth by enhancing its third-party marketplace, automating logistics operations, and implementing advanced artificial intelligence (AI) tools to refine customer recommendations. This strategic focus positions Amazon to capitalize on future opportunities.
Furthermore, AWS is poised to benefit from the rapid expansion of the generative AI market, while Amazon’s often-overlooked advertising segment has the potential to attract advertisers away from competitors like Alphabet‘s Google and Meta Platforms‘ Facebook and Instagram.
Analysts project that from 2024 to 2027, Amazon’s revenue and EPS will grow at a CAGR of 11% and 20%, respectively, as these growth catalysts materialize. The stock remains reasonably valued at 28 times next year’s earnings, positioning Amazon favorably to benefit from ongoing trends in the e-commerce, cloud computing, AI, and digital advertising sectors over the coming decades.
3. Analyze Uber’s Growth and Market Position in Mobility Services
Uber, recognized as the leading global ride-hailing service and a major player in the food delivery industry, reported an impressive 189 million monthly active platform consumers (MAPCs) in the third quarter of 2025. This figure represents a remarkable increase from the 93 million MAPCs reported at the close of 2020, showcasing Uber’s substantial growth.
Uber has surged past its smaller competitors by aggressively expanding its services, attracting a larger pool of riders and drivers, and bundling its offerings through subscriptions like Uber One. Recently, the company reported a significant milestone of 36 million Uber One subscribers, indicating strong customer loyalty.
Today’s Change
(0.61%) $0.51
Current Price
$83.87
Key Data Points
Market Cap
$174B
Day’s Range
$81.51 – $84.00
52wk Range
$59.33 – $101.99
Volume
34M
Avg Vol
17M
Gross Margin
32.74%
Dividend Yield
N/A
As Uber has expanded its services, it has successfully reduced costs, streamlined its operations by cutting excess stock-based compensation, and divested non-core and overseas businesses. This strategic focus has led to profitability on a generally accepted accounting principles (GAAP) basis over the past two years, marking a significant milestone for the company.
Looking ahead, analysts forecast Uber’s revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow at a CAGR of 16% and 28%, respectively, from 2024 to 2027. With an enterprise value of $190.5 billion, Uber presents an attractive investment opportunity at 17 times next year’s adjusted EBITDA, making it a compelling choice for investors seeking reliable growth stocks.
If you are in search of a dependable growth stock to acquire, hold, and let appreciate over several years, Uber checks all the right boxes for a smart investment.
