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Friday's Exclusive Story
Surprising Beneficiaries of High Gas Prices: BJs and CostcoAuthored by Dan Schmidt. First Published: 4/1/2026. 
Key Points
- Oil and gas companies benefit from rising crude prices, but so do wholesale club retailers like Costco and BJ's.
- Wholesale clubs offer discounted gas, which entice membership sign-ups and increase foot traffic in stores.
- Both COST and BJ stocks look attractive at the moment due to this catalyst, but your preference between the two likely depends on your risk tolerance.
- Special Report: Elon Musk already made me a “wealthy man”
For many in the United States, high gas prices are the most visible reminder of the ongoing conflict in Iran. With Brent crude topping $115 as April 2026 begins, elevated fuel costs look likely to persist through the summer. For the oil and gas industry, higher crude prices are welcome; for most consumers and businesses, they are not. There is, however, one niche of stocks that can benefit from high gas prices—wholesale membership clubs. The Membership Mantra: Gas as a Loss Leader Fuels Warehouse SalesWhen gas prices rise, it’s not necessarily a boon for independent gas stations. Integrated oil companies can pass along price increases, but independent operators still face the costs of refined product purchases, taxes and local marketing. For membership clubs like Costco Wholesale Corp. (NASDAQ: COST) and BJ’s Wholesale Club Holdings Inc. (NYSE: BJ), however, a surge in pump prices presents an opportunity—even if the profits don’t come directly from fuel sales.
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Clubs use gas as a "loss leader" to draw customers and drive traffic into their warehouses. They often sell fuel roughly 10 cents below typical street prices—and sometimes 20 to 30 cents cheaper—thanks to the bargaining power of their large station networks. Those scale advantages allow them to maintain overall margins while offering discounted fuel. Selling gas at very thin margins helps justify membership fees and brings shoppers into the stores, where they are more likely to buy higher-margin items. Customers who notice savings at the pump are likelier to enter the warehouse and make additional purchases, a dynamic that is especially potent when consumers are focused on stretching their dollars. Both companies explicitly cite fuel as a tool for acquiring and retaining members in their earnings reports. Costco: Warehouse Club Leader Shows Strength with Retention Rates and Stock UpswingEighteen months after raising membership fees—Gold Star from $60 to $65 and Executive from $120 to $130—Costco customers appear to have largely accepted the increase. The company reported a 92% renewal rate in its Q2 2026 results on March 6, along with comparable sales growth of 7.4%. Quarterly revenue of $69.6 billion represented 9.2% year-over-year growth, comfortably beating analysts’ expectations. Valuation, however, remains the primary concern: the stock trades at more than 54 times forward earnings and roughly 15 times book value, a rich multiple for a retailer with profit margins under 3%. 
COST shares began 2026 strongly—12 gains in 14 trading days pushed the price up about 15%—but the stock has since entered a consolidation phase, trading between roughly $950 and $1,000 for much of the past month. The Relative Strength Index (RSI) is poised to move above 50, a reading often associated with renewed bullish momentum. A recent Golden Cross supports that view, and the 50-day moving average may now act as support. The stock also received a Buy upgrade from Weiss Ratings, leaving consensus at Moderate Buy with an average price target near $1,039 (about 5% upside). BJ’s Wholesale: Undervalued Competitor Quickly Growing Market ShareBJ’s is a smaller, nimbler rival to Costco and Walmart Inc.'s Sam’s Club, and its valuation may be more attractive to risk-conscious investors. The company operates 263 locations (199 with fuel stations) and recently expanded into its 21st state with a new store in Kentucky. Fiscal 2025 was a strong year for BJ’s: it opened a record 14 new stores and maintained a membership renewal rate above 90%. BJ’s also finished the year with a record adjusted EPS of $4.40, and its Q4 2025 earnings beat analyst expectations. 
Valuation is one area where BJ’s stands out: the stock trades at about 24 times forward earnings, despite consistent earnings beats and a growing membership base. For investors considering new positions, BJ’s may be catching the start of an upswing. The stock’s prolonged drawdown ended last October and bullish momentum has built since then. The share price reclaimed the 50-day moving average by December and has trended higher with supporting RSI readings. The convergence of the 50-day and 200-day moving averages toward a Golden Cross could attract a fresh wave of buyers. |
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