Costco Wholesale Corporation is a wholesale retailer with over 700 warehouses across the world. They are the largest membership warehouse in the United States, as well as the second largest retailer in the world behind only Walmart. Members must pay an annual membership fee and in exchange get to enjoy high-quality products at low costs by buying in bulk. Let’s take a look at a few charts…
Here is a five-day chart of $COST, courtesy of Google Finance.
And here we have a 1-month chart of $COST, courtesy of Google Finance.
As we can see, the numbers are running very close to 160 dollars per share, which is a key resistance point. Buyers have tested this point three times this month, and the fourth one is closely approaching. My personal prediction, which may very well be wrong, is that come Monday, the market will test the 160 one final time, before taking a dip back to the 157 area. Essentially what we have is a very short-term sell opportunity this week.
However, if one should prefer to play a longer game with Costco, there is good news…
Costco has grown approximately 10.7% each year since the late 90’s, and while the stock may be a bit pricey according to some analysts, Costco is an absolute juggernaut and is only getting stronger. Final verdict? If you have the capital Costco is a great buy, but maybe not at this price.
Final verdict? If you have a pile of cash just sitting in your brokerage account, Costco is a good buy.
