Costco Stock Shows Resilience Ahead of Earnings, Outperforms Retail Peers

Costco Wholesale (COST) shares gained momentum last week following a robust August sales report, setting a positive tone ahead of its fiscal Q4 earnings release on September 25. The stock's 2.63% weekly rise outpaced competitors like Target (TGT) and BJ's Wholesale Club (BJ), though Walmart (WMT) posted a similar 2.72% gain. This divergence highlights the market's preference for value-oriented retailers in the current economic climate.

Technically, COST maintains strong support NEAR its 200-day moving average around $960, while the $1,000 level remains a psychological resistance point. The broader S&P 500's 1.53% advance provided tailwinds, but Costco's outperformance suggests company-specific strengths. Analyst sentiment continues to improve as consumers prioritize the warehouse retailer's value proposition amid persistent inflation concerns.