COST stock: buy or sell
Updated on:
Apr 22nd, 2021
2
COST stock brief
- Costco Wholesale stock just moved 0.63% to close at $374.09 on the stock market on Wednesday.
Should I buy Costco Wholesale stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $COST stock a buy?
In the current situation of Costco Wholesale there is just one buy setup eligible:
ATH buy setup
All-time Highs is always an excellent buy point for those who like to buy high and sell higher. The good point of buying at ATHs is that price doesn't have upper resistances, and usually it rises fast. However, there's the risk of a bulls trap that may trigger your buy order and then falls sharply. That's why a stop loss is always important. Costco Wholesale can break to all-time highs any time soon, as it only needs to rise a 3.53%. The buy point is at $387.31 if you want to trade with this strategy. The stop loss would be set at $348.58
| Buy setup | Buy point | Stop loss | Risk |
| ATH buy setup | $387.31 | $348.58 | 10.00% |
Should I sell Costco Wholesale stock?
When is it time to sell Costco Wholesale?. Trading strategies allow us to avoid impetuous decisions based on our personal sentiments or the buzz surrounding the market. We like very simple setups to guide us on when is the best moment to sell our shares. Be aware that these setups should not be used for shorting Costco Wholesale stock
As a golden rule, you must never hold an operation that generates greater losses than those expected by the time of the buy. The moment to sell shares always has to be dictated by the stop-loss (automatic or manual)
Is it time to sell Costco Wholesale stock?
In the current situation of Costco Wholesale there is not any eligible sell setup, so Costco Wholesale stock holders with operations in green can keep their positions
Costco Wholesale ratings
In the last month, 11 ratings were published for Costco Wholesale. General sentiment is bullish, with 10 out of 11 publishing positive forecasts
| Brokerage firm | Rating |
|---|---|
| Mar 24th, 2021 | |
| Oppenheimer | Buy |
| Apr 8th, 2021 | |
| Deutsche Bank Aktiengesellschaft | |
| Oppenheimer | |
| Stifel Nicolaus | |
| The Goldman Sachs Group | |
| Wells Fargo & Company | Buy → Buy |
| Apr 14th, 2021 | |
| Deutsche Bank Aktiengesellschaft | |
| Oppenheimer | Buy |
| Stifel Nicolaus | |
| The Goldman Sachs Group | |
| Wells Fargo & Company | Buy |
Costco Wholesale stock analysis
Since the price bottomed at $307.00 in early March, the stock gained by 21.85%.
SMAs overview
Supports and resistances
The current resistance levels are:
The current support levels are:
Bollinger bands
The price is moving near to the upper Bollinger band, signaling some level of overbought in recent sessions. This is not a sell point, as price can move in these levels for many days and weeks
Relative strength index
Broke through the overbought line Wednesday, with a reading of 71.97. Breaking out above the level of 70 is not a sell signal, as stocks can be in the overbought zone for many weeks and may continue to climb
Costco Wholesale stock price history
Costco Wholesale started trading priced at an adjusted price1 of $7.53 on Jul 1986. Since then, COST stock surged by 4,867.99%, with an average of 143.18% per year. An investment of $1,000USD on the IPO would have a value of $49,679.95 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Costco Wholesale stock
How much a stock will be priced tomorrow or next week is quite unpredictable. Banks and financial organisations post their analysis forecasting how a particular stock will performance in the future.
Along with buy or sell recommendations, brokerage institutions release their price target based on the stock price action and the company fundamental data. Most of these estimates follow the publication of new financial data by the company, and many times. If you are a small trader you should not invest based on these forecasts.
There are 11 price forecasts published for Costco Wholesale that average $388.18. Costco Wholesale closed at $374.09 on Wednesday, so the target price is predicting an increase by 3.77%.
| Brokerage firm | Price target |
|---|---|
| Mar 24th, 2021 | |
| Oppenheimer | $350.00 → $370.00 |
| Apr 8th, 2021 | |
| Deutsche Bank Aktiengesellschaft | $344.00 → $350.00 |
| Oppenheimer | $370.00 → $400.00 |
| Stifel Nicolaus | $370.00 → $385.00 |
| The Goldman Sachs Group | $377.00 → $415.00 |
| Wells Fargo & Company | $370.00 → $400.00 |
| Apr 14th, 2021 | |
| Deutsche Bank Aktiengesellschaft | $344.00 → $350.00 |
| Oppenheimer | $370.00 → $400.00 |
| Stifel Nicolaus | $370.00 → $385.00 |
| The Goldman Sachs Group | $377.00 → $415.00 |
| Wells Fargo & Company | $370.00 → $400.00 |
Earnings and financials
In early March, Costco Wholesale Corporation ($COST) reported adjusted EPS for that worsened Wall St. expectations. Quarterly EPS was $2.14 per share compared to the forecasted $2.45. This Q2 report means an earnings surprise of -12.65%. On the contrary, reported sales were $44.8 billion, in line with the market estimates.
This compares to Earnings of $2.10 per share a year ago, so current EPS means an improvement of 1.90%. Revenue skyrocketed a 14.58% on an annualized basis in the , from $390.7B to $447.7B last quarter.COST ($COST) releases Q3 earnings report late next May.
Costco Wholesale performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Costco Wholesale ($COST) | 12.00% | 3.70% | 2.00% |
Important:
The thoughts expressed in this post are personal and should not be followed as recommendations for you to buy or sell shares. The author of this article does not have any knowledge of the specific circumstances of the reader, his or her finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are provided for education purposes onlyCOST summary
| Wednesday, April 21st, 2021 | |
|---|---|
| Open | $371.61 |
| Close | $374.09 |
| Day range | $371.47 - $374.58 |
| Previous close | $371.73 |
| Session gain | 0.63% |
| Average true range | $5.85 |
| 50d mov avg | $345.27 |
| 100d mov avg | $356.21 |
| 200d mov avg | $348.61 |
| Earnings date | May 27th, 2021 |