- Costco Wholesale Corporation is an American multinational company that operates a chain of membership-only big box stores.
- It is the world’s fifth-largest retailer as of 2022. It is ranked 11th on the Fortune 500 ranking biggest U.S. corporation by its revenue.
- The COST share is listed on the National Association of Securities Dealers Automated Quotations (NASDAQ). Let’s analyze the stock through technical analysis.
The company was founded on 15 September 1983 by Jeffrey Brotman and James Sinegal. Services provided by this firm are merchandise, cash & carry, gas stations, and warehouse club. Its net income in 2022 was $5.84 Billion. The total revenue in 2022 was $226.95 Billion.
The operating income in 2022 was $7.7 Billion. Its total assets in 2022 were $64.17 Billion. Its fundamentals have increased in 2022 as compared to its previous year. Members and the number of employees have also increased in 2022.
Cost Stock Chart Analysis
In the daily time frame, the stock is in an uptrend. Near the current market price, it made multiple support points.
The trendline might act as a strong line and the stock might continue its upward movement in the future.
The price share of the COST stock in 2022 (year-end) was around $455.72. In 2023, the current market price of the share is $562.72. It has increased by $107 in 9 months.
In today’s trading session, it was up by 1.14% which means it went up by $6.35 in a single day.
The pattern in the rectangle is known as “Bullish Harami”. It indicates that the bulls are trying to push stock in the up direction.
The previous day was controlled by bears so today bulls tried to control the market.
This pattern confirms that the bear trend will end after the formation of a “Bullish Harami”.
According to forecasts, the price might rise by 2.57%. That means it might go up to the $577.16 price level by 23rd September 2023.
The current market sentiments are bullish. It recorded 14/30 green days in the last 30 days which is around 47%.
The F&I index (Fear & Greed Index) is showing 39 (Fear) and the price volatility was 1.66% over the last 30 days.
Is the stock good for investment?
According to Coincodex, it is not a good time to buy or invest in the stock because it might decrease by (22.74%) in the next year.
The moderate growth in the net income of COST share was 15% over the five years.
The Return On Equity (ROE) is around 27% which is 16% more than the average growth of the industry.
Live Chart of NASDAQ: COST
Conclusion
Through the evaluation of the stock with the help of technical analysis we can observe that overall the stock is in an uptrend position.
In the monthly time frame, it was in an upward direction which can help to earn good returns.
In the weekly time frame, it is moving in the upward direction.
it is also in uptrend In the daily time frame,. Overall it is in an uptrend and in all time frames also it is moving up only.
So the stock does have the potential to generate a good amount of returns on the investment made by the general public in the yearly and monthly time frame.
The prices might go up as it is continuously in an uptrend. The stock has provided great ROI to its investors.
Technical Levels
Resistance Level- $535.73
Support Level- $450.77
Disclaimer
The views and opinions of the author or anyone in this article are for informational purposes only. They do not offer financial, investment, or other advice. Investing in or trading crypto assets involves the risk of financial loss.