Costco: The Surprising Winner of Rising Gas Prices
Key Points
Costco's discounted gas stations save members roughly $0.20 per gallon, often offsetting the $65 annual membership fee within months.
With 147 million cardholders and rising, Costco's business remains resilient despite inflation.
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As inflation squeezes retailers, Costco (NASDAQ: COST) is emerging as a surprising beneficiary-thanks to discounted gas, bulk essentials, and a resilient membership model. Watch the video below to find out why this warehouse giant might be the most exciting stock in retail right now.
A full transcript is below the video.
Stock prices used were the market prices of April 1, 2026. This video was published on April 6, 2026.
As inflation tightens its grip on retailers everywhere, Costco is doing something remarkable. It's thriving.
The warehouse giant's stock is up over 10% this year, making it one of the few bright spots in a struggling market. Why? Two words: gas prices. As fuel costs skyrocket due to global supply constraints and rising crude oil prices, Costco's discounted gas stations are becoming a major draw. Members save about 20 cents per gallon compared to local averages, which can pay for that $65 membership in just a few months.
But it's not just about filling your tank. When consumers feel the squeeze, they flock to Costco for lower per-unit prices on bulk essentials. The company's membership model is proving remarkably resilient, with 147 million cardholders worldwide and counting.
Sure, at 50 times earnings, Costco isn't cheap. But with comparable store sales growing at 6.7%, international expansion ramping up, and e-commerce sales surging 22.6%, investors are willing to pay a premium. In an uncertain economy, Costco's boring business model might just be the most exciting thing in retail.
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Kevin Jackson has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.
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