Chart of the Day: Is This Another Great Costco Buy Opportunity?

Costco (COST) stock has been a huge disappointment in TheStreet Pro Portfolio this year. The shares have declined 17% from all-time highs in May at $1,067 to current levels around $889.

The failure of this huge retailer's shares to perform is difficult for us to understand, especially since we have seen other big-box names, such as Walmart (WMT) performing well. Even poor Target (TGT) is trading off its 2025 lows, something Costco cannot say at this time.

But whenever COST has fallen in the past it has always proved to be a great opportunity to pick up shares and take advantage of the selling. Today is probably another one of those chances and at the lows of the year, we are presented with a low-risk entry point. A good spot to add for the long term.

Looking at the chart, make no mistake, the technicals are awful and are not showing any sign of improvement. Moving average convergence divergence (MACD) remains on a sell signal, though the chart shows this is coming close to a crossover move.

Money flow is poor and has been for weeks, stochastics are pointing lower, while the parabolic SAR (stop and reverse) is once again bearish, so there is resistance. Candles are purple, which is strongly bearish on the GoNoGo composite of indicators.

So, if you're looking a short-term trade with momentum then it is not to the upside. Earnings are out on Dec. 11 after the close and we suspect they will be good. However, the stock may not respond exactly that way, considering the technical condition is so poor. Take a closer look at adding shares, though. These opportunities do not come along too often with Costco.

We like COST in TheStreet Pro Portfolio and rate it a One, or "buy at anytime."

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At the time of publication, TheStreet Pro Portfolio was long COST.