What Cheaper Gas Would Mean For Costco’s Sales And Margins

Costco Wholesale (COST) stock currently trades at 45.6 times earnings, compared with 21.9 for the S&P 500. Investors paying that price may be counting on growth. That growth has materialized, as September net sales rose 13.0% from a year earlier. However, gas hit $4.32 a gallon in mid-September, and those higher fuel costs add to Costco's sales. So how much of that growth would go if gas prices came back down.