Why Costco Stock Could Be Recession-Proof
Lower-income American consumers are running out of money. The price of gas has spiked in recent months due to the Iran war, reaching $4.55 per gallon according to AAA, the highest level since 2022.
If consumers cut back on spending due to higher gas prices, this could be bad news for the retail sector and consumer discretionary stocks. Recent analysis from Bloomberg found that CEOs are mentioning gas prices more often on earnings calls. What does this mean for warehouse retailers like Costco (NASDAQ: COST)?
The company's stock is up about 17% year to date, outperforming the S 500 index and about on par with its major competitor, (NASDAQ: WMT). During the past five years, Costco shares have slightly lagged behind Walmart's performance but have strongly outperformed other major retail stocks like Target (NYSE: TGT), Home Depot (NYSE: HD), and Amazon (NASDAQ: AMZN).
Source Fool.com
Walmart Inc. Stock
The stock is an absolute favorite of our community with 99 Buy predictions and no Sell predictions.
With a target price of 109 € there is a slightly positive potential of 13.01% for Walmart Inc. compared to the current price of 96.45 €.
