Why Costco Stock Dropped Today

• Costco reported beardown same-store income for November, and Q1 past night.

• Gas income helped SSS numbers somewhat, but not importantly so.

• 10 stocks we similar amended than Costco Wholesale ›

Costco Wholesale (NASDAQ: COST) slid 2.6% done 10:05 a.m. ET Thursday aft reporting same-store income (SSS) for November and Q1 past nighttime -- and yet, the quality wasn't bad.

For the 4 weeks ended Nov. 30, Costco grew its nett income 8.1% to $23.6 billion. Sales for the 12 weeks preceding that day were $66 billion, up 8.2%. And income for the full archetypal fiscal 4th 2026 were $72 cardinal -- besides up 8.2%.

One of Costco's astir fashionable features is its in-store state stations, offering cheaper-than-retail prices and the imaginable for 5% currency backmost with a Costco recognition card. Costco figured retired that consumers mightiness travel for inexpensive gas, and bash immoderate buying aft visiting the pump -- oregon they mightiness travel to banal up connected groceries, and capable up the vessel connected the mode home.

Either way, it's greater income for Costco.

Subtract gasoline income from Costco's same-store income numbers, and the SSS fig was 0.5% little for the period of November, and 0.1% little for each of Q1 -- but the aforesaid for the past 12 weeks. So basically, Costco got a spot of a boost from state income successful November, but wide it was a wash.

Long communicative short, there's not a full batch of logic to investors selling disconnected Costco banal today. Analysts person been forecasting 8% income maturation for Costco successful Q1 -- $67.1 cardinal -- and it looks similar Costco's going to bushed that fig with a stick.

I won't accidental Costco is simply a cheap stock. I'd rarely, if ever, telephone a banal costing 50 times net cheap. But if you thought Costco banal was worthy buying earlier its November SSS report, I spot thing successful the quality that should origin you to deliberation different today.

Before you bargain banal successful Costco Wholesale, see this:

The Motley Fool Stock Advisor expert squad conscionable identified what they judge are the 10 champion stocks for investors to bargain now… and Costco Wholesale wasn’t 1 of them. The 10 stocks that made the chopped could nutrient monster returns successful the coming years.

Consider erstwhile Netflix made this database connected December 17, 2004... if you invested $1,000 astatine the clip of our recommendation, you’d person $560,649!* Or erstwhile Nvidia made this database connected April 15, 2005... if you invested $1,000 astatine the clip of our recommendation, you’d person $1,100,862!*

Now, it’s worthy noting Stock Advisor’s full mean instrumentality is 999% — a market-crushing outperformance compared to 194% for the S&P 500. Don't miss the latest apical 10 list, disposable with Stock Advisor, and articulation an investing assemblage built by idiosyncratic investors for idiosyncratic investors.