Costco: Be Ready To Buy On The Dip (Technical Analysis)

Stock Market

Costco Wholesale (COST) looks like one of those situations where you need to separate the opinions of the company from the opinions and the stock. There is no doubt that shoppers love the place, as is evidenced by the photo of their parking lot above. Is it a good stock to invest in? Let’s see what a variety of investors and analysts say. Since the Barchart TrendSpotter signaled a buy on 10/28, the stock actually lost 5.76%.

Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, Iceland, China, and Taiwan. It offers branded and private-label products in a range of merchandise categories. The company offers sundries, dry groceries, candies, coolers, freezers, liquor, and tobacco and deli products; appliances, electronics, health and beauty aids, hardware, garden and patio products, sporting goods, tires, toys and seasonal products, office supplies, automotive care products, postages, tickets, apparel, small appliances, furniture, domestics, housewares, special order kiosks, and jewelry; and meat, produce, service deli, and bakery products. It also operates pharmacies, optical, food courts, hearing aids, and tire installation centers, as well as 668 gas stations; and offers online business delivery, travel, same-day grocery, and various other services. As of August 28, 2022, the company operated 838 membership warehouses, including 578 in the United States and Puerto Rico, 107 in Canada, 40 in Mexico, 31 in Japan, 29 in the United Kingdom, 17 in Korea, 14 in Taiwan, 13 in Australia, 4 in Spain, 1 in Iceland, 2 in France, and 2 in China. It also operates e-commerce websites in the United States, Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan, and Australia. The company was formerly known as Costco Companies, Inc. and changed its name to Costco Wholesale Corporation in August 1999. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington. – Source: Yahoo

Barchart’s Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the website when you read this report.

Analysts and Investor Sentiment – I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide:

Many individual investors look to Value Line for objective data on stocks, and Value Line seems to agree with the Wall Street analysts and individual investors.

A site that many professional analysts and investment advisors use is the CFRA’s MarketScope. Analyst Arun Sundarun, CFA, CPA made the following projections and observations:

My Conclusion: At the present time, this is one of the most solid retailers anywhere. As a going concern, their revenue and earnings increases look rock solid. At the same time, the market has seen that the stock has gotten a little pricey and near term is trending down a bit. If you own it, hold it, or you can place this on your watchlist and wait for the price to come above its 20 and 50 day moving average, I think you will be handsomely rewarded. This is a long-term buy in my opinion. Use a chart similar to the one below to watch the price vs. the 50-day moving average and the 30-day turtle channel to be your entry guide:

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