COST Should I Buy
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Costco Wholesale Corp (COST) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The stock demonstrates strong financial performance, positive analyst sentiment, and favorable congressional trading activity. While technical indicators are neutral, the overall sentiment and long-term growth potential make it a solid investment choice.
The stock shows bullish moving averages (SMA_5 > SMA_20 > SMA_200), indicating an upward trend. However, the MACD histogram is negative (-0.735), suggesting a slight bearish momentum. RSI is neutral at 64.344, and the stock is trading near resistance levels (R1: 1003.645).
Strong financial performance with YoY revenue growth of 8.30%, net income growth of 11.29%, and EPS growth of 11.39% in Q1
Analysts have consistently raised price targets, with most maintaining Outperform ratings.
Congress trading data indicates heavy buying with no selling, reflecting confidence in the stock.
Potential catalysts such as a special dividend or stock split as noted by Oppenheimer.
Roth Capital maintains a Sell rating, citing traffic deceleration and potential reversal of January's e-commerce gains.
MACD indicates slight bearish momentum, and the stock is near resistance levels, which could limit short-term upside.
In Q1 2026, Costco reported revenue of $67.31 billion (up 8.30% YoY), net income of $2.001 billion (up 11.29% YoY), EPS of 4.5 (up 11.39% YoY), and gross margin of 13.07% (up 1.00% YoY). This reflects strong financial growth and operational efficiency.
Analysts are overwhelmingly positive on Costco, with multiple firms raising price targets recently (e.g., Bernstein to $1,155, Baird to $1,100, and Oppenheimer to $1,100). Outperform ratings dominate, with only one Sell rating from Roth Capital.
