Investors have high expectations for Costco Wholesale (NASDAQ: COST) stock ahead of the company's upcoming earnings report. The warehouse retailing giant is outpacing the broader market's rally through mid-September, with returns exceeding 20% so far in 2023.

These levels of gains are typically associated with a bull market, which might be on the way if the U.S. economy manages to avoid a recession over the next few quarters. But Costco is an attractive investment partly because of its ability to grow earnings through a wide range of selling environments.

With that competitive advantage in mind, let's look at three reasons to like this stock as Costco prepares to close out its fiscal year on Sept. 26.

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Source Fool.com