Costco's in a Bind, but Here's Why It Could Be Cut Loose

Retail stalwarts like Walmart and Target reported significant drops in profitability due to increased costs on freight, labor, and supply-chain disruption. Bulk retailer Costco Wholesale (NASDAQ: COST) reports in the coming days, and investors seemingly are pricing in bad news; the stock is down more than 20% over the past month. Costco is likely to talk about significant cost increases throughout its business when it reports earnings for the third quarter of its fiscal 2022.