The Chart of the Day belongs to Costco Wholesale (COST). I found the stock by sorting the All Time High list for the highest technical buy signals, then used the Flipchart feature to review the charts. Since the Trend Spotter signaled a buy on 8/8 the stock gained 7.97%.
COST operates membership warehouses based on the concept that offering members very low prices on a limited selection of nationally branded and selected private label products in a wide range of merchandise categories will produce high sales volumes and rapid inventory turnover. This rapid inventory turnover enables Costco to operate profitably at significantly lower gross margins than traditional wholesalers, discount retailers and supermarkets.
Barchart's Opinion trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 10 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 Barchart.com web site when you read this report.
Barchart technical indicators:
- 100% Barchart technical buy signals
- Trend Spotter buy signal
- Above its 20 50 and 100 day moving averages
- 9 new highs and up 1.70% in the last month
- Relative Strength Index 64.86%
- Barchart computes a technical support level at 124.20
- Recently traded at 128.68 with a 50 day moving average of 122.91
Fundamental factors:
- Market Cap $ 56.61 billion
- P/E 28.17
- Dividend yield 1.13%
- Revenue expected to grow 7.00% this year and another 7.90% next year
- Earnings estimated to increase 2.40% this year, an additional 11.70% next year and continue to increase at an annual rate of 10.04% for the next 5 years
- Wall Street analysts issued 11 strong buy, 8 buy, 9 hold and 1 under perform recommendation on the stock.
Good solid core holding. Use the 50 day moving average to gauge weakness and exit at the 100 day moving average.
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