The price of Costco Wholesale Corporation (NASDAQ:COST) stock ended January 15, 2020 trading at $300.82 which saw downtrend of 2.35% since the beginning of 2020. For most investors, the 0.36% rally in the share price could have prompted them to buy the stock, but doing that would be a mistake as it would be taking into consideration only the short-term performance of the stock.
A look at the COST stock today shows that it has gained 42.55% of its value over the past one year, which has led to some investors becoming excited about the short-term performance of Costco Wholesale Corporation (NASDAQ:COST). If we turn to the stock analysts in general, they revealed that most of them are still bullish about the chances of the shares. The consensus rating from analysts for Costco Wholesale Corporation (COST) is 2.4 which is a ,neutral rating. Over the past week, the stock has been rated as a Buy 11 times while it has been rated as a Hold 8 times. The 52-week high price for COST is $307.34 which is attained on September 09 while its 52-week low currently stands at $205.75 and was reached on February 08. At the moment, the stock is trading $5 above its YTD moving average set at $295.82.
Moving on, Costco Wholesale Corporation (COST) last released its earnings for the November 2020 quarter of the fiscal year. The company performed lower over the past three months, with its earnings down -1% year-over-year at $1.73. The company brought a surprise of 2 as analysts were predicting $1.7 per share. The revenue generated by Costco Wholesale Corporation in the November 2020 quarter surged by 6% to reach $37.04 billion. This is high compared to the $35.07 billion it recorded in the same quarter last year. To see what traders should watch in its February 2020 financial results, analysts have consensus earnings per share of $2.05 which is higher than the $2.01 recorded in the same quarter a year ago. Over the next 12 months, the earnings per share are expected to move by 8%. If it achieves that, then the company firmly believes that its long-term annual earnings growth rate target set at 7 % could be achieved. The company has also recorded a revenue of $154.67 billion over the past 12 months.
In order to determine if the stock is worthy of your patience, you should know that Costco Wholesale Corporation (NASDAQ:COST) is now trading at 36.6X the earnings per share recorded over the past 12 months. This is a downtrend compared to the readings of the sector which is 38.06X while the industry average stands at 62.47X. The most popular way to value a stock is to look at its historic Price-to-Earnings (P/E) ratio with the help of its earnings report over the past 12 months. Costco Wholesale Corporation was able to achieve an EPS of $8.22 during the last four quarters. The P/E ratio is widely known due to the fact that it is widely used, simple, effective, and, tautologically.
On Wednesday, January 15 of 2020, the 14-day Absolute ATR (Average True Range) for COST moved by $3.47. Over the past seven days, the stock’s average daily volatility stood at 1.15%. A stock with a low volatility is usually a good one as it means that investors are very confident in the stock. Costco Wholesale Corporation’s trading volume has recently moved to 1.57 million, which is compared with the average daily volume of 1.93 million shares.
The daily chart for COST, points out that the company has recorded 6.84% gains over the past six months. However, it is still 46.21% higher than its most recent low trading price. The performance of the stock over the past five days shows that it is up 2.08% though it is 2.09% above its three-week moving average. It is worthy to know that price action is not always clear. There are times when a stock will undergo some negatives, trade erratically within some range or even act very unpredictable. When that happens, then making use of moving averages makes the pattern clearer for traders. Comparing to 50-day SMA, the price of the stock has surged by 1.16% while it is up 8.62% against the 200-day SMA. This is usually seen as the last support line for a stock, as a move downward could signal a bearish trend or market. The daily chart of COST reveals that it has gained some grounds as it ended Wednesday with a 3.07% rise over the past 30 days.