Costco (COST, $466.40) beats fiscal Q4 earnings expectations
Costco posted its fiscal fourth quarter earnings per share of $4.20, exceeding analysts’ expectations of $4.17.
The big-box retail behemoth’s revenue for the quarter came in at $72.09 billion, compared to the $72.04 that analysts expected.
Amidst inflationary pressures on costs, gross margins narrowed in the quarter. The company has still not hiked its membership fees, thereby maintaining its current prices of $60 for a basic membership and $120 for an executive membership.
COST's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for COST turned positive on May 30, 2023. Looking at past instances where COST's MACD turned positive, the stock continued to rise in of 42 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on May 26, 2023. You may want to consider a long position or call options on COST as a result. In of 86 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
COST moved above its 50-day moving average on May 26, 2023 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 May 31, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 13 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 387 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.
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
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 .
The Aroon Indicator for COST entered a downward trend on May 26, 2023. 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 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 58, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding 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 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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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 (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 (9.634) is normal, around the industry mean (56.962). COST has a moderately high P/E Ratio (38.023) as compared to the industry average of (23.074). COST's Projected Growth (PEG Ratio) (3.760) is slightly higher than the industry average of (1.962). Dividend Yield (0.007) settles around the average of (0.033) among similar stocks. P/S Ratio (0.968) is also within normal values, averaging (1.153).
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
General Information
a company which sells goods through membership warehouses
Industry DiscountStores
COST and
Correlation & Price change
A.I.dvisor indicates that over the last year, COST has been loosely correlated with TGT. These tickers have moved in lockstep 66% of the time. This A.I.-generated data suggests there is some statistical probability that if COST jumps, then TGT could also see price increases.
| Ticker / NAME | Correlation To COST | 1D Price Change % | ||
|---|---|---|---|---|
| COST | 100% | -0.00% | ||
| TGT - COST | 66% Loosely correlated | +1.57% | ||
| DG - COST | 66% Loosely correlated | +2.63% | ||
| WMT - COST | 60% Loosely correlated | +0.96% | ||
| BJ - COST | 56% Loosely correlated | -0.21% | ||
| DLTR - COST | 53% Loosely correlated | +3.13% | ||
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