Costco stock: buy or sell?

COST stock price: $318.31 0.03% At close on February 14th, 2020

Updated on:
February 14th, 2020

5

Costco Wholesale remained constant 0.03% on February 14th and peaked a new all time high at $319.81. With Feb 14th, it's been 3 climbing days in a row, adding $7.63 or 2.43%.

Costco Wholesale Corporation, together with its subsidiaries, operates membership warehouses. It offers branded and private-label products in a range of merchandise categories.

Should I buy Costco 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. Having a trading plan helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

These 2 buy setups match with Costco Wholesale stock right now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Costco Wholesale stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. Unfortunately, we couldn't find any rating for COST stock for the last 30 days.

Costco stock analysis

Daily outlook

After several days of continuous hikes in past weeks, Costco Wholesale remained steady 0.03% to $318.31.

After topping to all time highs on February/14, Costco Wholesale remained steady 0.03% to $318.31. Since price and SMA100d lines crossed up on January/8, COST climbed $27.57 (9.48%).

COST stock chart (daily)

Weekly outlook

Costco Wholesale shares peaked new all time highs again this week, setting highs to $319.81. Shares closed at $318.31 and stepped up 1.49% during the week.

Price pattern shows an uptrend with two rising tops and bottoms, and now finally trading above the $313.62 resistance. Since SMA20d and SMA40w crossed up early May, COST price climbed $75.93 per share (31.33%). Since late February 2019 when COST stock price broke up the SMA40w line, it gained $104.00 (48.53%).

COST stock chart (weekly)

Costco stock price history

Costco stock went public on July 9th, 1986 with a price of $7.791. Since then, COST stock surged a 3,986.10%, with a yearly average of 120.80%. If you had invested $1,000 in Costco stock in 1986, it would worth $39,861.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Costco stock historical price chart

COST stock reached all-time highs on Feb/14 with a price of $319.81.

Costco stock price target

Nobody can reliably foresee how stock prices may evolve in the future. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last month we have not found any price forecast for Costco Wholesale stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

Costco Wholesale reported cool results for 2019-Q1 on March. Costco Wholesale rocketed Earnings per Share (EPS) by 20.40%, beating experts estimates of $1.67. Costco Wholesale posted $2.01.
COST earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a1.59n/a
2017-Q3-n/a2.08n/a
2017-Q42018-03-071.471.598.2%
2018-Q12018-03-071.451.42-2.1%
2018-Q22018-05-311.681.71.2%
2018-Q32018-10-042.342.360.9%
2018-Q42018-12-131.621.61-0.6%
2019-Q12019-03-071.672.0120.4%
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual turnover report draw a wonderful gain of 9.73% to $141,576.00 M dollars. However, its profit margin (compared to revenues) stayed constant to 2.21%, that is $3,134.00 million.

Costco Wholesale presents anual results in August, and to compare its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Costco Wholesale TTM sales up to February 2019 were $147,237.00 and income $3,449.00 M USD. If we compare this TTM figures with the last reported annuality, we can esteem Costco Wholesale business evolution since August 2018: Annual sales up to February, compared to lastest yearly report, gained a nice 4.00%. Improving that, profit margin (net income/revenues) stayed steady at 2.21%.

COST annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$105,160 M-$2,040 M1.9%-
2014$112,640 M7.11%$2,060 M1.8%0.98%
2015$116,199 M3.16%$2,377 M2.0%15.39%
2016$118,719 M2.17%$2,350 M2.0%-1.14%
2017$129,025 M8.68%$2,679 M2.1%14.00%
2018$141,576 M9.73%$3,134 M2.2%16.98%
TTM $147,237 M4.00%$3,449 M2.3%10.05%

Quarterly financial results

Costco Wholesale reported $35,396.00 million in revenues for 2019-Q1, a 0.93% improvement compared to previous quarter. Reported quarter income marked $889.00 M with a profit margin of 2.51%. Profit margin stayed constant a 0.32% compared to previous quarter when profit margin was 2.19%. When comparing revenues to same quarter last year, Costco Wholesale sales marked a great increase and escalated a 7.28%.
COST quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$28,860 M-$700 M2.4%-
2017-Q3$42,300 M46.57%$919 M2.2%31.29%
2017-Q4$31,809 M-24.80%$640 M2.0%-30.36%
2018-Q1$32,995 M3.73%$701 M2.1%9.53%
2018-Q2$32,361 M-1.92%$750 M2.3%6.99%
2018-Q3$44,411 M37.24%$1,043 M2.3%39.07%
2018-Q4$35,069 M-21.04%$767 M2.2%-26.46%
2019-Q1$35,396 M0.93%$889 M2.5%15.91%

Costco Wholesale ownership

When you are planning to buy shares of a stock, it's worth to review its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Costco Wholesale, 0.22% of all outstanding shares are owned by its staff.

In case of Costco Wholesale stock, 72.48% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for COST stock account 0.00%, no big difference from last month.

For a better context understanding, the following table shows ownership data compared to other related companies:

COST
Market cap$140.6 B
Total shares441.8 M
Float shares439.2 M
  - Institutional holdings (%)72.5%
  - Insider holdings (%)0.2%
Shares in short selling0.0%

Costco summary

Friday, February 14th, 2020
Open$318.87
Close$318.31
Day range$316.95 - $319.81
Previous close$318.20
Session gain0.03%
Average true range$4.17
50d mov avg$300.89
100d mov avg$298.60
200d mov avg$282.93
Daily pattern
Weekly pattern lb02c

Costco Wholesale performance

To better understand Costco Wholesale performance you must becnhmark its gains with other related stocks in same sector or industry. In the following table, we compare Costco Wholesale performance to :
Stock3m6m12m
COSTCostco Wholesale5.05%16.88%48.40%

Costco Wholesale competitors

Unfortunately, we could not find any public company that could be defined as Costco Wholesale competitor. This doesn't mean Costco Wholesale does not have any competitor in the market, it's just we could not detected it.

    Latest Costco stock news