Costco Stock Price Hit a 52-Week High; Will It Break The ATH At $610?

(CTN News) – Costco: Retail companies are among the world’s largest corporations. A long journey and consistent performance are required.

It is only then that they will be able to build a large user base and attract investors. In these years, several giant players have emerged in the retail sector, including Walmart (NYSE: WMT), Amazon (NASDAQ: AMZN), Home Depot (NYSE: HD), and Costco Wholesale (NASDAQ: COST).

Costco Wholesale maintains its top position without cutting costs

Neither a business nor a market cap exceeding billions of dollars could survive for very long without unique characteristics.

As a result, Costco Wholesale Corporation (NASDAQ: COST) has made its membership program its hallmark. It makes it worthwhile to hold on to COST shares for a long period of time. At $563, Costco’s stock price has reached a 52-week high.

According to The Motley Fool, Costco has one of the lowest markups in the industry at 11%. As a result, it operates with paper-thin margins, making it difficult for others to compete.

When goods and products are offered at a low price, customers become attracted to them and significant revenue follows.

Over the last five years, Costco’s revenue has increased by 12% annualized and is expected to increase by 7% CAGR over the next five years. During the next three to five years, the company’s earnings per share are also expected to increase by 8% annually.

In order to fill the gap created at the margin’s end, the retailer has an annual membership program. During the last quarter, Costco generated $53.65 billion in revenue. A billion dollars were generated from membership, representing a 6% increase over the previous year.

There is a 90% renewal rate for the company’s membership. There will be 124.7 million cardholders by May 2023, a growth rate of 7% per year is expected.

Stock price movement for Costco Wholesale (COST)

In the last intraday session on Friday, July 28th, COST stock traded at a yearly high of $563.32, a gain of just 0.27%. Over the last three weeks, the price has increased 7% from $525, which is acting as immediate support.

Following Costco’s earnings at May-end, the stock price has risen nearly 20% since then. At $480, it has strong support. There was a golden crossover between the moving averages at the time, which helped the price to gain upside momentum.

Currently, Costco stock is trading above a 50-day exponential moving average of $532 and a 200-day exponential moving average of $509. An upward trend in price is confirmed by the gap between the moving averages.

The RSI is at 71, indicating a bullish trend in the price of COST stock, however, a recent decline could cause a slight retracement in the price. The MACD remains above zero and maintains an upward curve, affirming the upward trend.

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