Costco (COST, $481.00) shares jump, on solid December sales
Costco Wholesale shares climbed higher on Friday, after the retail giant posted December sales figures that suggest solid spending during holiday period.
Costco’s sales for the five weeks ending on January 5 rose +7% from a year ago to $23.8 billion, well above the Street forecasts of +3.5% growth. The figure is also a marked acceleration over the 5.3% growth of November.
Comparable U.S. sales grew +3.6%, the sharpest increase since June.
Last month, Costco reported diluted earnings for the three months ended Nov. 20, at $3.10 per share, 2 cents short of the Street consensus forecast. Group sales were up +8.1% to $54.44 billion in that quarter.
COST's Indicator enters downward trend
The Aroon Indicator for COST entered a downward trend on March 19, 2025. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 109 similar instances where the Aroon Indicator formed such a pattern. In of the 109 cases the stock moved lower. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on February 20, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on COST as a result. In of 78 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 Moving Average Convergence Divergence Histogram (MACD) for COST turned negative on February 21, 2025. 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 43 similar instances when the indicator turned negative. In of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at .
COST moved below its 50-day moving average on March 07, 2025 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 March 13, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 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 .
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where COST's RSI Indicator exited the oversold zone, of 18 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 7 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 3-day Advance, the price is estimated to grow further. Considering data from situations where COST advanced for three days, in of 376 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 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 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 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 Price Growth Rating for this company is (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 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 (15.674) is normal, around the industry mean (7.469). P/E Ratio (52.776) is within average values for comparable stocks, (37.107). COST's Projected Growth (PEG Ratio) (5.386) is very high in comparison to the industry average of (2.630). COST has a moderately low Dividend Yield (0.005) as compared to the industry average of (0.025). P/S Ratio (1.523) is also within normal values, averaging (1.249).
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a company which sells goods through membership warehouses
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