How does Costco's August same‑store sales growth compare with its main rivals such as Walmart and Target?

Costco’s August “same‑store” (comparable‑sales) growth came in at about 8.7 % year‑over‑year, a rate that far outpaces its two biggest U.S. discounters. Walmart’s fiscal‑Q2 (July‑Sept.) comparable‑sales growth was roughly 5 % YoY, while Target posted a more modest ≈3 % gain for the same period. The gap gives Costco roughly a 5‑point premium over Walmart and a 6‑point premium over Target, underscoring its ability to drive higher traffic and basket size even as the broader retail sector grapples with a soft consumer‑spending backdrop.

From a trading perspective, Costco’s out‑of‑step sales acceleration translates into stronger top‑line momentum and supports its higher‑multiple valuation relative to peers. The stock has been trading in a tight 20‑day range around $570‑$580, with the price currently near the upper bound; the relative‑strength advantage suggests a breakout to the $600‑$620 zone could be realistic if the earnings beat is coupled with forward‑look guidance that continues to beat consensus. Conversely, a pull‑back toward the lower range would likely be defensive rather than a fundamental reversal, given the robust same‑store performance. Positionally, a long‑biased stance on Costco—preferably via a modest call‑option spread or a 10‑day swing trade above $580—offers a higher‑probability play versus Walmart (WTW) and Target (TGT), which appear more exposed to macro‑driven margin pressure. Keep an eye on upcoming retail sentiment indicators (consumer confidence, CPI) and any Walmart/Target earnings updates; a widening gap in comparable‑sales growth could further fuel relative outperformance in Costco’s equity price.