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.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
COST's RSI Oscillator recovers from oversold territory
The RSI Indicator for COST moved out of oversold territory on September 11, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 27 similar instances when the indicator left oversold territory. In 23 of the 27 cases the stock moved higher. This puts the odds of a move higher at 85%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 12 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +0.51% 3-day Advance, the price is estimated to grow further. Considering data from situations where COST advanced for three days, in 221 of 356 cases, the price rose further within the following month. The odds of a continued upward trend are 62%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on August 27, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on COST as a result. In 25 of 73 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 34%.
The Moving Average Convergence Divergence Histogram (MACD) for COST turned negative on August 27, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In 21 of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at 44%.
COST moved below its 50-day moving average on August 31, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for COST crossed bearishly below the 50-day moving average on September 04, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 8 of 19 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 42%.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 38%.
COST broke above its upper Bollinger Band on August 24, 2026. 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 Aroon Indicator for COST entered a downward trend on September 21, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 19 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 65, placing this stock better than average.
The Tickeron SMR rating for this company is 35 (best 1 - 100 worst), indicating 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 60 (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 PE Growth Rating for this company is 61 (best 1 - 100 worst), pointing to average 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 Valuation Rating of 99 (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 (11.848) is normal, around the industry mean (6.970). P/E Ratio (45.036) is within average values for comparable stocks, (35.844). COST's Projected Growth (PEG Ratio) (4.388) is slightly higher than the industry average of (2.126). Dividend Yield (0.006) settles around the average of (0.009) among similar stocks. P/S Ratio (1.353) is also within normal values, averaging (1.008).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a company which sells goods through membership warehouses
Industry DiscountStores
Advertisement