Walmart Shares Climb 11% While Costco Gas Boost Drives 1% Gain
Costco stock is up 1% since Feb. 28 versus an 8.2% S&P 500 drop, driven by gas sales from California stations averaging over $6 per gallon. Walmart shares have gained 11% this year versus a 15% slide in the S&P Global Luxury Index, flagging a potential consumer slowdown.
1. Costco Outperformance Driven by Gas Sales
Since Feb. 28, Costco shares have risen 1% while the S&P 500 fell 8.2%, as surging California gas prices above $6 per gallon have driven members to its fuel stations and into warehouses. With gas stations at most of its 640 US locations and 26% of sales tied to California, analysts project March same-store sales growth of 10% and further gains ahead.
2. Walmart Recession Signal Flags Slowdown
Walmart’s stock is up 11% year-to-date compared with a 15% retreat in the S&P Global Luxury Index, triggering the Walmart Recession Signal. This widening gap suggests consumers are favoring value retailers over high-end goods, indicating rising financial stress and a likely economic slowdown that may require policy support.