Costco's Comeback: Why Betting Against This Retail Giant Is a Losing Game

Core Viewpoint - Costco experienced a challenging year in 2025, with its stock declining by 6%, contrasting with a 16% gain in the S&P 500, indicating a rare and significant underperformance for the warehouse retailer [1] Company Performance - The decline in Costco's stock is notable as it marks a significant deviation from the overall market performance, highlighting potential concerns regarding the company's competitive positioning and operational challenges in the current economic environment [1] Market Context - The S&P 500's 16% gain during the same period underscores a broader market strength, suggesting that Costco's struggles may be more pronounced in comparison to its peers and the overall retail sector [1]