Chart of the Day: The Price Is Always Right for Costco
The stock has quietly moved up to challenge the all-time highs.
You're reading 0 of 1 free page.
Register to read more or Unlock Pro — 50% Off Ends Soon
Costco COST is a powerhouse. The monster retailer has been one of our longest and best performers in our portfolio and has easily beaten the S&P 500 and other indexes.
What we like about the company is its simplicity, good pricing and enviable membership model that remains very sticky after price hikes to member. The company is simply executing its plan at all levels and, even as tariffs come in that may challenge earnings, the company remains upbeat and optimistic.
The chart is just fantastic here. Not only are the price chart and strong volume -- but all of the indicators are lining up in bullish fashion. Note the Average Directional Index, or ADX, in pane 3, which is just starting to surge. This tells us the current trend is strengthening, though, it does not tell us direction. Obviously we can see from the price chart that is up.
The price chart at the top is bullish; blue candles abound while money flow, as seen in the bottom pane, is very strong.
All-time highs are not far off, this high quality name should get there before earnings hit in a couple of weeks.
We like Costco in TheStreet Pro Portfolio and rate it a Two, or "stockpile on pullbacks."
The Pro Portfolio is long COST.
