Costco Wholesale Corporation (Rate) shares rose nearly 3% after a series of analyst upgrades. Aftermost week, the company reported that its March same-store sales advanced by 5.8% to $12.9 billion, excluding gasoline prices and foreign traffic. Several analysts weighed in on the announcement, saying that the sales underscore the stability of its business model and suggest strong potential for improvement ahead.
Stifel analysts be convinced of the trends show that Costco’s value proposition is winning amidst customers and reiterated their firm’s Buy rating and $200 per share cost target. Baird analysts suggested that the results underscore the durability and relevancy of Costco’s issue model and reiterated their Outperform rating and $215 price aim. Wells Fargo analysts upgraded the stock, saying that a festive dividend could come soon. (For additional reading, check out: Costco’s House Model Is Smarter Than You Think.)
From a technical standpoint, the market broke out from trendline resistance to R1 resistance at around $194.00. The ancillary to strength index (RSI) moved toward overbought levels with a pore over of 63.22, but the moving average convergence divergence (MACD) experienced a bullish crossover. These needles suggest that the stock could see further upside over the hanker term, but there could be some short-term consolidation.
[Learn various about supplemental technical indicators like the RSI and the MACD in Chapter 4 of the Polytechnic Analysis course on the Investopedia Academy]Traders should watch for a breakout from R1 defiance to R2 resistance at $199.58 or a move lower to retest trendline or pivot as regards support at around $187.42. With the favorable same-store sales observations, the stock is likely to continue to trend higher over the intermediate to want term, although the stock’s move higher over the past few terms could lead to some profit taking before attempting to prepare out from highs made earlier this year.
Chart respectfulness of StockCharts.com. The author holds no position in the stock(s) mentioned except finished with passively managed index funds.