Costco Stock Eyes New Buy Point Amid Softer Sales Trend

Daily Updates


Costco Wholesale (COST) reported weaker sales trends last month as the coronavirus resurgence weighed on foot traffic during the key holiday season. Costco stock was flat.




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Core same-store sales, which exclude gas and forex impacts, in the five weeks through Jan. 3 increased 10.9%. That fell short of the Consensus Metrix estimate for growth of 11.2%.

Comps rose 11% in the U.S., 5.7% in Canada, and 15.8% in other international locations. E-commerce sales jumped 61.6% over the period.

Net sales for the month increased 12.3% to $19.14 billion, slowing further from 15.1% growth in November and 16.5% gain in October.

For the 18 weeks ended Jan. 3, net sales rose 14.9%, comp sales grew 14.5% and e-commerce sales vaulted 74.8%.


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Costco Stock

Shares were unchanged, near 370, Thursday. Costco stock is forming a flat base with a 393.25 buy point, according to MarketSmith chart analysis. But the base has formed largely below the 50-day line and the relative strength line is lagging.

Costco stock gapped down in early December when it announced sales softened in November, as Covid-19 surged again in the U.S. and around the world.

Among rival retail stocks, Sam’s Club parent Walmart (WMT) added 0.2% Thursday, BJ’s Wholesale (BJ) rose 1.3%, and Target (TGT) rose nearly 1%.

Find Aparna Narayanan on Twitter at @IBD_Aparna.

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