Stocks Fell Today. Costco's Shares Rose. Here's Why.

Core Insights - Costco's stock experienced a 3% increase to nearly $943 following the release of its September sales data, which showed a year-over-year sales rise of 5% to approximately $26.6 billion, indicating positive investor sentiment ahead of the holiday season [2][3]. Sales Performance - September sales for Costco rose 9% in 2024, but this was perceived positively by investors despite a slowdown compared to the previous year, attributed to unique circumstances such as Hurricane Helene and port strikes that inflated last year's figures [5][7]. - Global same-store sales increased by 5.7%, and a new metric for "digitally-enabled" comparable sales showed a significant rise of over 26% [6]. Market Reaction - The stock's rise occurred on a day when U.S. indexes were down, suggesting that investors viewed Costco's sales performance as a strong indicator of resilience [2][4]. - Analysts remain optimistic about Costco's stock, with a mean price target of $1,065, representing a potential upside of about 13% from the recent closing price [6].