Costco Wholesale Corp. COST Stock Analysis

Costco Wholesale Corp. stock trades under the ticker COST & is worth taking a closer look into to see how it fits into your portfolio strategy.

COST stock closed at $446.69/share on 6/17/2022.

Costco Wholesale Corp. COST Stock’s Technical Performance Broken Down

Costco Wholesale Corp. COST Stock's Technical Performance Over The Last Year

COST Stock Price: $446.69

10 Day Moving Average: $461.19

50 Day Moving Average: $506.92

200 Day Moving Average: $509.53

RSI: 38.64

MACD: -11.696

COST stock’s MACD looks set to bearishly crossover in the coming days, and their recent trading volume has been above average compared to the prior year.

Their RSI is inching towards oversold territory, signaling that the losses may continue on into the coming days-to-weeks.

They will need to stay above the $440/share support level, else further downside movement is indicated.

Costco Wholesale Corp. COST Stock As A Long-Term Investment

Long-term oriented investors will find COST stock’s P/E (ttm) of 36.13 to be fair, but may find their 10.18 P/B (mrq) to be a bit too rich.

They recently reported 16.2% Quarterly Revenue Growth Y-o-Y, with 10.9% Quarterly Earnings Growth Y-o-Y.

Investors will like COST stock’s balance sheet, with $11.83B of Total Cash (mrq) & $9.04B of Total Debt (mrq).

COST stock pays a 0.72% dividend yield, which appears stable in the long-run, as their payout ratio is 25.8%.

69.1% of COST stock’s outstanding share float is owned by institutional investors.

Costco Wholesale Corp. COST Stock As A Short-Term Trade Using Options

Short-term oriented traders can use options to profit from COST stock’s price movements, while also hedging against broader market volatility.

I am looking at the contracts with the 7/15 expiration date.

The $435, $430 & $440 calls are all in-the-money, listed in order of largest to smallest open interest.

The $460, $465 & $450 puts are also all in-the-money, and are much more liquid than the calls, signaling bearish sentiment from the broader markets in the coming month.

Tying It All Together

COST stock has many interesting characteristics that traders & investors will find attractive.

Investors will like their balance sheet & dividend yield, but may find their valuation metrics to be higher than they’d like them to be.

Traders will like the liquidity of their options contracts, especially in these volatile market times.

All-in-all, COST stock is worth taking a closer look at to see how it can fit into your portfolio strategy.


Leave a Reply

Your email address will not be published.