Costco: Suddenly Underperforming Amid Softer Sales Growth, 200 DMA Tested

Summary

  • Costco's June comp sales rose 5.8%, a slight deceleration, signaling emerging headwinds for retailers amid cautious consumer trends and tariff impacts.
  • Despite strong Q3 results and robust e-commerce growth, I see softer growth ahead, with premium valuation making shares fairly priced.
  • Key risks include potential margin pressure from tariffs, weaker consumer spending, and increased competition from Sam’s Club and BJ’s Wholesale.
  • I maintain a hold rating on COST; the stock appears mildly overvalued with technical support in play and limited near-term upside.
Costco Korea Warehouse in Busan

Arnaud Eeckhout

Costco’s (NASDAQ:COST) June comp sales rose 5.8%. That’s a slight deceleration from a 6.0% increase in May and was pointed to by the media as a negative consumer indicator. It’s key because this week we’ll get June CPI, PPI, and Retail Sales reports. Amid

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