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The stock market is struggling, particularly the retail sector, with the SPDR S&P Retail ETF down over 14% this year, while Costco Wholesale (COST) has seen a 6% increase. Costco’s strong business model and ability to negotiate low prices make it resilient amid tariff impacts, although its stock is now trading at a high price-to-earnings ratio of over 56, well above its five-year average. Despite Costco’s solid fundamentals, concerns about its valuation and potential recession impacts suggest it may not be a safe investment at this time.
