U.S.-based warehouse chain Costco (COST) is slated to report fiscal Q2 earnings on March 5, after the market closes. Analysts project another strong quarter, with revenue expected to increase to $69.25 billion and EPS near $4.55. The company’s momentum is supported by record holiday sales, strong traffic trends, and the ongoing strength of its membership‑fee model. Ahead of the results, COST stock is a Strong Buy, according to the technical indicators, implying further upside from current levels.
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Analyzing COST Stock’s Technical Indicators
According to TipRanks’ easy-to-understand technical analysis tool, Costco stock is currently on an upward trend. The stock’s 50-day Exponential Moving Average (EMA) is $961.22, while its price is $1,006.74, implying a bullish signal.
Further, the Moving Average Convergence Divergence (MACD) indicator, which helps understand momentum and potential price changes, signals a Buy.
Another technical indicator, Williams %R, helps traders see if a stock is overbought or oversold. For Costco stock, Williams %R currently shows a Buy signal, suggesting the stock is not overbought and has room to run.
Moreover, the Rate of Change (ROC) is a momentum-based technical indicator. It measures the percentage change in a stock’s price between the current price and the price from a specific number of periods ago. Typically, an ROC above zero confirms an uptrend. COST currently has an ROC of 0.52%, which signals a Buy.
What Is the Prediction for Costco Stock?
Overall, Wall Street has a Strong Buy consensus rating on Costco stock based on 19 Buys, four Holds, and one Sell recommendation. The average COST stock price target of $1,081.57 indicates 7% upside potential.
