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Mar 15, 2021
Costco(COST, $328.90) gets rating boost from Wells Fargo

Costco(COST, $328.90) gets rating boost from Wells Fargo

Retail company Costco got a rating upgrade from Wells Fargo analysts.

Analyst Edward Kelly raised his rating on Costco shares to 'overweight', with a price target of $370. Kelly mentioned solid membership growth and potentially "sticky" market share gains from pandemic.

The recent cooling off of shares could be a buying opportunity , according to the analyst.

This month, Costco posted fiscal second quarter earnings that increased +2% year-over-year to $2.14 per share, but fell short of the Street consensus forecast . Revenue rose +15% year-over-year to just under $44 billion. Comps climbed +13% while e-commerce sales increased +75% from the year-ago quarter.  

Related Ticker: COST

COST sees its Stochastic Oscillator ascends from oversold territory

On July 02, 2026, the Stochastic Oscillator for COST moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 51 instances where the indicator left the oversold zone. In of the 51 cases the stock moved higher in the following days. This puts the odds of a move higher at over .

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where COST's RSI Indicator exited the oversold zone, of 25 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .

The Moving Average Convergence Divergence (MACD) for COST just turned positive on July 02, 2026. Looking at past instances where COST's MACD turned positive, the stock continued to rise in of 47 cases 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 368 cases, the price rose further within the following month. The odds of a continued upward trend are .

COST may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.

The Aroon Indicator entered an Uptrend today. In of 376 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 Momentum Indicator moved below the 0 level on June 18, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on COST as a result. In of 72 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .

The 10-day moving average for COST crossed bearishly below the 50-day moving average on June 03, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 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 .

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 .

Fundamental Analysis (Ratings)

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 62, placing this stock better than average.

The Tickeron SMR rating for this company is (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 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 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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than 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 (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 (12.594) is normal, around the industry mean (7.447). P/E Ratio (47.855) is within average values for comparable stocks, (37.479). COST's Projected Growth (PEG Ratio) (4.643) is slightly higher than the industry average of (2.785). Dividend Yield (0.006) settles around the average of (0.015) among similar stocks. COST's P/S Ratio (1.441) is slightly higher than the industry average of (1.021).

Notable companies

The most notable companies in this group are Walmart (NASDAQ:WMT), Costco Wholesale Corp (NASDAQ:COST), Target Corp (NYSE:TGT), Dollar General Corp (NYSE:DG), Dollar Tree (NASDAQ:DLTR).

Industry description

Companies in the discount stores industry specialize in offering substantial discounts on a vast array of retail products. Some companies in this industry also operate general merchandise warehouse clubs. Products sold at discount stores are typically similar to those of any department store, but the pricing of the goods is generally much lower (and hence the name “discount”). Think Dollar General Corporation, Dollar Tree, Inc. and Five Below, Inc. Many discount stores target low-income households and/or price-sensitive consumers as their potential market. Discount stores’ profitability could hinge on factors like competitive pricing, sufficient locations, healthy revenue per square foot, and effective advertisement. These store operators could have an edge over other retailers during financial crises or recessions, when many consumers could be looking for less expensive alternatives.

Market Cap

The average market capitalization across the Discount Stores Industry is 160.91B. The market cap for tickers in the group ranges from 1.78K to 890.03B. WMT holds the highest valuation in this group at 890.03B. The lowest valued company is TUEMQ at 1.78K.

High and low price notable news

The average weekly price growth across all stocks in the Discount Stores Industry was 0%. For the same Industry, the average monthly price growth was 6%, and the average quarterly price growth was 8%. DLTR experienced the highest price growth at 5%, while TGT experienced the biggest fall at -7%.

Volume

The average weekly volume growth across all stocks in the Discount Stores Industry was 42%. For the same stocks of the Industry, the average monthly volume growth was 14% and the average quarterly volume growth was 83%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 77
P/E Growth Rating: 61
Price Growth Rating: 49
SMR Rating: 49
Profit Risk Rating: 62
Seasonality Score: -6 (-100 ... +100)
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General Information

a company which sells goods through membership warehouses

Industry DiscountStores

Profile
Details
Industry
Specialty Stores
Address
999 Lake Drive
Phone
+1 425 313-8100
Employees
341000
Web
https://www.costco.com
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