Great News for Costco Investors

Costco stock, which had underperformed the S&P 500 this year with only 3.5% gains, received a boost after reporting strong September results. The company's revenue growth accelerated to 13% year-over-year, driven by 11.4% comparable sales growth. U.S. comparable sales surged 12.5%, reversing previous slowdown concerns, with comparable sales excluding gas stations still solid at 7.6%. The strong performance suggests inflation is driving more customers to Costco's warehouse model.