Costco (COST, $305.93) misses Q3 earnings estimate; but reports y-o-y growth in sales
Costco Wholesale Corp. posted third quarter earnings that fell behind analysts’ expectations.
The retail company’s adjusted earnings for the three months ending May 10 dropped -7.5% year-over-year to $1.89 per share, below the Street consensus estimate by around a nickel.
The coronavirus pandemic costs increased to $283 million, which is 47 cents per share.
However, revenue rose +7.3% year-over-year to $37.27 million. The average transaction climbed +9.3% from last year. Membership revenues increased+ 5% to $815 million The company’s U.S. stores remained open during the pandemic since it sells essential goods (among other items).
Tickeron's A.I.-powered scorecard rates Costco as HOLD.
Current price $306.00 crossed the resistance line at $300.88 and is trading between $309.90 support and $300.88 resistance lines. Throughout the month of 04/27/20 - 05/28/20, the price experienced a +0.48% Uptrend. During the week of 05/20/20 - 05/28/20, the stock enjoyed a +2% Uptrend growth.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Aroon Indicator entered a Downtrend today. In 36 of 112 cases where COST Aroon's Indicator entered a Downtrend, the price fell further within the following month. The odds of a continued Downtrend are 32%.
Bullish Trend Analysis
The Momentum Indicator exceeded the 0 level on May 27, 2020. Traders may consider buying the ticker or exploring call options. In 61 of 96 cases where the ticker's Momentum Indicator exceeded 0, its price rose further within the subsequent month. The odds of a continued Uptrend are 64%.
The Moving Average Convergence Divergence (MACD) just turned positive. Considering data from situations where COST's MACD histogram became positive, in 29 of 43 cases, the price rose further within the following month. The odds of a continued Uptrend are 67%.
The price moved above its 50-day Moving Average, which indicates a change from a Downtrend to an Uptrend. In 33 of 44 similar backtested cases where COST's price crossed above its 50-day Moving Average, its price rose further within the subsequent month. The odds of a continued Uptrend are 75%.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where COST advanced for three days, in 215 of 378 cases, the price rose further within the following month. The odds of a continued Uptrend are 57%.
Fundamental Analysis (Ratings)
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 81%. During the last month, the daily ratio of advancing to declining volumes was 1.51 to 1.
The Tickeron Valuation Rating of 79 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.23) is normal, around the industry mean (8.85). P/E Ratio (36.31) is within average values for comparable stocks, (47.03). COST's Projected Growth (PEG Ratio) (4.13) is slightly higher than the industry average of (1.45). Dividend Yield (0.83) settles around the average of (1.30) among similar stocks. P/S Ratio (0.89) is also within normal values, averaging (0.66).
The Tickeron SMR rating for this company is 57 (best 1 - 100 worst), indicating slightly weaker than average sales and a marginally profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 35 (best 1 - 100 worst), indicating steady price growth. COST’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 31 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of 30 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is 3 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 86, placing this stock better than average.
Momentum Indicator for COST turns positive, indicating new upward trend
COST saw its Momentum Indicator move above the 0 level on April 09, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 74 similar instances where the indicator turned positive. In of the 74 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
COST moved above its 50-day moving average on April 24, 2025 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for COST crossed bullishly above the 50-day moving average on April 25, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where COST advanced for three days, in of 381 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 440 cases where COST Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 5 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where COST declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
COST broke above its upper Bollinger Band on May 02, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 53, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. COST’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (17.544) is normal, around the industry mean (8.768). P/E Ratio (58.990) is within average values for comparable stocks, (41.138). COST's Projected Growth (PEG Ratio) (5.349) is slightly higher than the industry average of (2.776). COST has a moderately low Dividend Yield (0.005) as compared to the industry average of (0.022). P/S Ratio (1.702) is also within normal values, averaging (1.430).
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Fundamental Analysis Ratings
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General Information
a company which sells goods through membership warehouses
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