The Right Strategy For Today’s Market: Costco Wholesale Corporation (COST), Cerner Corporation (CERN)

Costco Wholesale Corporation (NASDAQ:COST) has its shares plummet by -2.79% or $8.56 from its all-time high of $307.34, with COST attaining that price back on September 09, 2019. The drop in the price of the shares saw it stand at $298.78 per share. COST has been trading at a low of $189.51 over the past one year but it surged by 57.66% or $109.27 to reach the $298.78 mark. Following the massive rise in stock price, COST received more attention from investors and analysts. On Wednesday, the stock plunged by 0.13%, which caused investors and analysts to excite about it. Following the plunge in price, the COST beta stands at 0.92, implying that its volatility level has gone down by 0.08 back of the general market. A look at the stock’s 200-day moving average shows that it is 18.38% above while its 50-day moving average shows that it is currently 4.17% above. Compared to 1.55% average daily volatility of past month, the stock’s average volatility for this week has decreased by -0.49 as the volatility level currently stands at 1.06%.

Over the past seven days, the stock has witnessed a price surge by 0.63%. This massive rise in stock price has caught the attention of both investors and market traders. The stock has performed excellently over the past 52 weeks, rising by 33.08% during that time frame and is now up by 46.67% since this point this year. COST has surged by 2.53% over the past 30 days, with its equity price gaining% of its value over the past ninety days. These figures add up to see the stock record a growth of 21.67% over the past six months.

Market analysts from research firms still remain bullish about the short-term performance of COST. Most of them are of the view that the stock would be able to reach $300 over the next 12 months. If that happens, then the stock would witness a 0.41% rise in its price and that would see the stock’s market cap hit an astonishing $132 Billion. Analysts view this stock as a bearish at the moment as its average rating is 2.3. According to Reuters, most of the 21 analysts covering the stock at the moment believe it is a Buy. 8 of them rated COST as a Hold while 12 of them either rated it as a Buy or a Strong Buy. However, 1 of them advised investors to sell the stock if they have it or shouldn’t buy it if they don’t possess any.

The stock’s technical analysis reveals that its 14-day Relative Strength Index (RSI) is currently in a neutral position as it was able to attain 65.36 points. he trading volume now standing at 1779415 shares. The decrease of -400585 shares in trading volume shows that traders and investors have shown less interest in the stock over the past few weeks. During that trading session, the average trading volume of COST was 2180000 shares, which is more than 0.82 times higher than its usual trading volume.

Cerner Corporation has seen its stock (NASDAQ:CERN) surge by $0.07 or 0.1% to currently trade at $68.16. This rise in the price of the stock has seen it establish a strong support at $67.77 a share. If the stock price is to drop below that support level, then it would be followed by a bearish trend. A slip below $67.39 would be bad for CERN as it would mean that the stock has lost 1.13% of its value. The stock going in the opposite direction and breaking past the resistance point to reach $68.49 would see it surge even higher. CERN would attempt to surge past the upward resistance point which is set at $68.83 a share. CERN has an average volatility of 1.71% over the past 30 days, while it has gained 28.43% of its value compared to its 52-weeks low point which stands at $48.78 on Dec 24, 2018. In the same breath, CERN has lost 0.65% compared to its 52-weeks high point which currently stands at $67.72 a share reached on Jul 12, 2019.

The stock is currently neutral as its Stochastic Oscillator (%D) is at 77.56%, which implies that a stability in price will be experienced for a while. Its shares P/S ratio is above the 0.73 industry average and above the 0.72 by the wider market, as CERN’s P/S ratio currently stands at 3.88. The stock’s estimated price-earnings (P/E) multiple is 21.43 which is also below the 12-month price-earnings (P/E) which stands at 36.51. Cerner Corporation has experienced a rise in its earnings, recording an increase rate of 10.8% in each quarter over the past five years.

The stock has an average rating of 2.1 which means that it has been rated as a Holdby most analysts. The stock is being covered by 20 analysts who gave a consensus recommendation of 2.1 which implies that it is currently in a neutral situation. Reuters looked into analysts covering Cerner Corporation, and 7 of them believe that the stock is a Hold at the moment. 13 of the analysts rated it as a Buy or a Strong Buy while the remaining analysts (1) rated it as a sell at the moment.