CostCo, the recession buster!

Published 1 month ago at 08 Aug 2022

Costco is a consumer staples stock that would likely find buyers in a recessionary environment. So, with the US in a technical recession, is the discount retailer going to see additional revenue from consumers looking to cut costs in leaner times. 
 
Walmart is a similar discount retailer, but it issued a profit warning that concerned investors in their latest earnings report. So, with Costco not due to release their earnings until September 22, is this a good time to try and capitalise on a period of seasonal strength that Costco has? Will Costco find buyers instead of Walmart stock?
 
Over the last ten years, between August 07 and September 16 Costco has risen seven times with an average gain of 2.02%. The largest return was 7.33% in 2014 and the biggest loss came in 2016.  
 
Will Costco gain on fears of a slowing US economy? 
 
 
Major Trade Risks: 
 
Any negative news for Costco could impact this outlook as well as a broader risk negative sentiment that can impact stocks generally. 
 
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