Costco $COST Stock MACD Set To Go Bullish On Analyst Actions

  • Post category:Analysts Activity
  • Reading time:8 mins read
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COST stock is set to trigger a bullish MACD on December 14, 2021, as a flurry of analyst actions paint a mostly bullish picture of the company.

Costco price target raised to $610 from $515 at Argus

On December 14, 2021, Argus analyst Chris Graja raised the firm’s price target on Costco COST stock to $610 from $515 and keeps a Buy rating on the shares. The analyst cites the company’s Q1 earnings beat with 6.8% growth in global traffic and 70bps improvement in U.S. and Canada improvement in renewals. Graja adds that he remains “very bullish” on Costco as even the periods of severe stock-market turbulence have proven to be good times for the stock, stating that his Buy-list coverage on the name started in October of 2008 with a price target of $58.

Costco price target raised to $509 from $498 at MKM Partners

On December 13, 2021, MKM Partners analyst Bill Kirk raised the firm’s price target on COST stock to $509 from $498 but keeps a Neutral rating on the shares. The analyst cites the company’s better than expected profitability in Q1 with U.S. comps up 9.9%, while noting that its miss on gross margins was offset by better than expected SG&A leverage. Kirk adds that Costco remains a “best in class operator”, but warns that with fewer industry tailwinds, competition around memberships has become “particularly concerning”.

Costco downgraded to Hold on valuation at R5 Capital

On December 13, 2021, R5 Capital analyst Scott Mushkin downgraded Costco stock to Hold from Buy with a $561 price target. The analyst cites valuation for the downgrade following the stock’s recent rally. He recommends investors “consider trimming back, not get out” of the stock. Costco is an “amazing company, unrivaled,” Mushkin tells investors in a research note.

Costco stock price target raised to $560 from $550 at BMO Capital

On December 10, 2021, BMO Capital analyst Kelly Bania raised the firm’s price target on Costco stock to $560 from $550 and keeps an Outperform rating on the shares. The company’s Q1 earnings were a “strong” start to the year on upside from membership fee income and “solid” SG&A leverage, the analyst tells investors in a research note. Given the continued strength in key membership statistics, which have accelerated significantly relative to pre-Covid trends, Costco remains “well positioned” into 2022 and beyond, Bania adds.

Costco top-line strength remains impressive, says Baird

On December 10, 2021, Baird analyst Peter Benedict said Costco’s Q1 results exceeded his estimates but more importantly its membership base has never been stronger with record renewal rates and robust MFI growth. He said the company is effectively navigating global supply chain challenges as in-stocks are healthy as the holiday season nears its peak, and is pragmatically passing through prices. Benedict reiterated his Outperform rating and $550 price target on Costco shares.

Costco price target raised to $560 from $510 at Morgan Stanley

On December 10, 2021, Morgan Stanley analyst Simeon Gutman raised the firm’s price target on Costco to $560 from $510 and keeps an Overweight rating on the shares after what he calls “another strong quarter” in fiscal Q1 that featured a 14% EPS beat despite a tough comparison. Gutman, who is raising his estimates by about 7%-9%, remains bullish even while acknowledging that “the stock sits at an all-time high share price and valuation,” noting that core on core gross margin comparisons get easier after fiscal Q2 and that member renewal rates continue to set record highs. The analyst adds that he “sensed an unexpectedly bullish tone from CFO Richard Galanti regarding a potentially higher structural margin profile” at Costco.

Costco price target raised to $600 from $550 at Wells Fargo

On December 10, 2021, Wells Fargo analyst Edward Kelly raised the firm’s price target on Costco to $600 from $550 and keeps an Overweight rating on the shares. Costco delivered another impressive quarter, as the company complemented impressive sales with strong mitigation of the challenging retail cost backdrop, Kelly tells investors in a research note.

Costco price target raised to $600 from $590 at UBS

On December 10, 2021, UBS analyst Michael Lasser raised the firm’s price target on Costco to $600 from $590 and keeps a Buy rating on the shares. The company’s Q1 results were “solid”, showing “plenty of strength” on its core membership metrics on top of the already known sales growth, the analyst tells investors in a research note. Lasser adds that Costco’s renewal rates reached all time highs, while its Executive Membership penetration growth was the strongest since Q4 of 2010.

Costco Wholesale Corporation Reports First Quarter Fiscal Year 2022 Operating Results

On December 9, 2021, Costco (Nasdaq: COST) announced its operating results for the first quarter (twelve weeks) of fiscal 2022, ended November 21, 2021.

Costco reported Q1 EPS of $2.98 versus the consensus estimate of $2.63. The company reported Q1 revenue of $50.36B versus the consensus estimate of $49.56B. Costco reported Q1 comparable sales up 15% and e-commerce sales up 14.3%.

📺 VIDEO Jim Cramer says he’s sticking with Costco for the long term, citing its pricing power

“Mad Money” host Jim Cramer said he believes Costco’s pricing power makes the wholesale retailer an important stock to own for the long term.

Jim Cramer says he's sticking with Costco for the long term, citing its pricing power

📺 VIDEO Bulls shop at Costco

On December 10, 2021, “Halftime Report” trader Pete Najarian spots unusual activity in Costco in the options market.

Bulls shop at Costco

COST Stock Technical Analysis

Cost Stock

Both the short-term and long-term trends are positive. This is a very positive sign. The rising large players volume is bullish. As noted earlier, the MACD is poised to go positive which would be bullish. COST is one of the better-performing stocks in the Food & Staples Retailing industry, it outperforms 83% of 48 stocks in the same industry. COST is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market. There is a support zone ranging from 524.32 to 537.05. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames. There is a resistance zone ranging from 558.83 to 558.83. This zone is formed by a combination of multiple trend lines in multiple time frames. Besides having an excellent technical rating, COST also presents a decent setup pattern. Prices have been consolidating lately. There is a support zone below the current price at 537.05, a stop order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal. Click here to sign up for email alerts on when COST stock is a buy or sell.

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