Costco's Business Is in Better Shape Than It Looks
Costco Wholesale (NASDAQ: COST) has been one of the more resilient retail stocks to invest in during the pandemic, even as inflation has been problematic for businesses. Recently, however, the warehouse giant's sales have shown signs of weakness, suggesting to investors that perhaps a slowdown for the company -- and the economy as a whole -- is underway.
But here's why that might not be true, and how Costco's latest monthly sales numbers may be a little misleading.
There are many reasons shoppers go to Costco, and purchasing cheap gas is one of them. The problem, however, is that means gas prices can have a big impact on the company's overall sales growth. And with prices coming down from a year ago, that has resulted in a worse overall growth rate for the business.
Source Fool.com
