COST stock: buy or sell
Updated on:
Jan 25th, 2021
1
COST stock brief
- Costco Wholesale stock just moved -0.14% to close at $362.30 on the stock market last Friday.
Should I buy Costco Wholesale stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. 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 not any eligible buy setup. This doesn't mean we expect a selloff for $COST in coming sessions, or that it may not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell Costco Wholesale stock?
"To sell or not to sell", if you are holding Costco Wholesale stock?. As when we have to buy shares, deciding when is appropiate to sell is not a random decision, and we must use our own trading style. When selling, as well as buying, our setups are very easy to follow but are only valid for selling shares you already own, not for shorting Costco Wholesale stock
As a rule of thumb, you must never hold an operation that generates greater losses than those expected at the time of the buy. The moment to sell shares always has to be determined 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 30 days, 2 analyst ratings were published for Costco Wholesale
| Brokerage firm | Rating |
|---|---|
| Dec 30th, 2020 | |
| Telsey Advisory Group | Buy |
| Jan 7th, 2021 | |
| Deutsche Bank Aktiengesellschaft | Neutral |
Costco Wholesale stock analysis
SMAs overview
Supports and resistances
The current resistances are:
The current supports are:
Bollinger bands
Since the price broke down the lower band last Tuesday, the price rebounded by 2.80%. The price is trading very close to the lower Bollinger band, poiting some level of oversold in recent sessions. This is not a bullish indicator, as price can trade in these levels for many days and weeks
Relative strength index
The RSI dropped below the overbought level of 70 in early December after just crossing to the overbough zone for 1 day (weak signal). The RSI reading last Friday was 44.54. Costco Wholesale price sank a 6.52% since then
Costco Wholesale stock price history
Costco Wholesale started trading priced at an adjusted price1 of $7.55 on Jul 1986. Since then, COST stock has risen by 4,698.68%, with an average of 138.20% per year. If you had invested thousand dollars in Costco Wholesale stock on Jul 1986, it would have a value of $47,986.75 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 publish their analysis predicting how a particular stock will performance in the future.
The following table shows the price predictions released by analysts in the last month. If you are a small investor you shouldn't invest based on these predictions.
There are 2 price predictions issued for Costco Wholesale that average $388.50. Costco Wholesale closed at $362.30 last Friday, so the target price is predicting a growth by 7.23%.
| Brokerage firm | Price target |
|---|---|
| Dec 30th, 2020 | |
| Telsey Advisory Group | $430.00 → $430.00 |
| Jan 7th, 2021 | |
| Deutsche Bank Aktiengesellschaft | $344.00 → $347.00 |
Earnings and financials
Costco Wholesale ($COST) had the shareholders call and presented the report in mid-December. COST surpassed Wall St estimates and posted of $2.29, that is a 11.71% increase compared to the estimates of $2.05. Despite this, reported sales of $43.2 billion were in line with market forecasts.
Compared to the same quarter last year, EPS was $2.69, so reported EPS is a decrease of -14.87%. Revenue skyrocketed a 16.65% on an annualized basis in the , from $370.4B to $432.1B last quarter.COST ($COST) presents earnings report next March. Expected for this quarter is $2.41, compared to $2.29 that was reported for Q1.
Costco Wholesale performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Costco Wholesale ($COST) | -0.50% | -1.30% | 14.40% |
Important:
The comments expressed in this post are personal and should not be followed as recommendations for you to buy or sell shares. The author of this report does not have any knowledge of the particular conditions of the reader, his or her finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are provided for educative reasons onlyCOST summary
| Friday, January 22nd, 2021 | |
|---|---|
| Open | $363.2 |
| Close | $362.3 |
| Day range | $359.85 - $364.63 |
| Previous close | $362.8 |
| Session gain | -0.14% |
| Average true range | $7.69 |
| 50d mov avg | $370.52 |
| 100d mov avg | $360.09 |
| 200d mov avg | $333.29 |
| Earnings date | March 4th, 2021 |