Costco posted earnings of $1.36 billion, or $3.07 a share, in the fiscal first quarter, missing analysts’ expectations of $3.12 a share. However, the figure was higher than the year-ago quarter’s compared with $2.98 a share.
The retail company’s revenue climbed +8% from the year-ago quarter to $54.44, vs. analysts’ estimates of $58.36 billion. Same-store sales were up +6.6% (vs. the Street forecasts of +6.4%), while e-commerce revenue fell -3.7%.
Costco currently operates 847 warehouses globally, and opened seven net new warehouses in the first quarter. The company intends to open three in the second quarter, four in the third quarter and 10 in the fourth quarter. The company plans to open 27 new warehouses in fiscal 2023, including three relocations.
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 .
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 .
The Moving Average Convergence Divergence (MACD) for COST just turned positive on May 30, 2023. Looking at past instances where COST's MACD turned positive, the stock continued to rise in of 43 cases over the following month. 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.
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.
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable 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.
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 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 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 Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued 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 (9.625) is normal, around the industry mean (56.963). COST has a moderately high P/E Ratio (37.879) as compared to the industry average of (22.840). COST's Projected Growth (PEG Ratio) (3.754) is slightly higher than the industry average of (2.000). Dividend Yield (0.007) settles around the average of (0.037) among similar stocks. P/S Ratio (0.966) is also within normal values, averaging (1.143).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a company which sells goods through membership warehouses
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.
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