Not all retailers can withstand economic downturns and shifting consumer trends, but a few have proven their resilience time and time again. While many companies struggle to keep up with evolving technology and consumer habits, some retailers have adapted, expanded, and strengthened their businesses. These “evergreen” stocks have shown steady growth despite economic headwinds, making them solid long-term investments.
Here are three retail giants that continue to dominate their respective spaces and look like strong buys today.
Costco Wholesale (COST) – A Membership Model That Keeps Growing
Costco has built an incredibly durable business by locking in shoppers through its membership model. Unlike traditional retailers, Costco generates a significant portion of its profits from membership fees, allowing it to sell products at razor-thin margins while still delivering strong financial performance.
Over the past decade, the warehouse club retailer has expanded its store count from 663 to 891 locations while nearly doubling its membership base. In that same period, its global renewal rate climbed from 87% to 90.5%, reinforcing the strength of its model.
Costco’s revenue grew at an 8% compound annual growth rate (CAGR) over the last 10 years, and analysts expect continued growth of 7% annually through 2027, with earnings per share (EPS) projected to rise at a 10% CAGR. Despite trading at a high valuation of 52 times forward earnings, Costco’s track record of expansion and strong membership retention make it a stock that could keep delivering for long-term investors.
Amazon (AMZN) – More Than Just an E-Commerce Giant
Amazon’s dominance in e-commerce is well established, but its real advantage comes from its cloud computing business, Amazon Web Services (AWS). While its retail business operates on thin margins, AWS generates high-margin revenue, subsidizing the company’s ability to invest aggressively in its logistics network, Prime membership perks, and new ventures like artificial intelligence.
Amazon’s revenue has grown at a remarkable 22% CAGR over the past decade, outpacing the broader retail sector. Looking ahead, analysts expect revenue to grow at a 10% CAGR through 2026, with EPS rising at an even faster 17% pace. Even with its strong performance, the stock is trading at just 36 times forward earnings—reasonable for a company with its growth trajectory and competitive advantages in multiple high-growth industries.
With over 200 million Prime members, Amazon has built a sticky customer base, and as AI and cloud computing become even more integral to businesses worldwide, AWS’s role as a market leader will only strengthen Amazon’s position.
Walmart (WMT) – A Retail Behemoth That Keeps Innovating
Walmart is the largest brick-and-mortar retailer in the world, with over 10,600 stores across multiple countries. While many traditional retailers have struggled to adapt to the rise of e-commerce, Walmart has successfully evolved by expanding its digital presence, revamping its stores, and leveraging its massive supply chain.
Over the last decade, Walmart has maintained steady revenue growth at a 3% CAGR, even through challenging economic conditions. Looking forward, analysts expect revenue and EPS to grow at 5% and 11% annual rates, respectively, through 2027, driven by automation, digital expansion, and the growth of its Walmart+ subscription service.
Although Walmart trades at a premium 37 times forward earnings, its unmatched scale, ability to adapt, and continued investments in technology make it a retail stock that can weather economic cycles and keep growing for years to come.
Final Thoughts
Retail stocks aren’t always the safest bet in uncertain times, but these three companies have proven their ability to thrive through economic cycles. Costco’s membership-driven model, Amazon’s cloud computing advantage, and Walmart’s scale and adaptability make them stand out in a crowded space. For long-term investors looking for stability and growth, these are three stocks worth considering today.
