Is Costco Wholesale Corp. technically bullish or bearish?
2025-09-20 18:55:00As of 11 September 2025, the technical trend for Costco Wholesale Corp. has changed from bearish to mildly bearish. The weekly MACD and KST indicators are bearish, while the monthly MACD is mildly bearish. The daily moving averages also indicate a bearish stance. However, the Bollinger Bands show a bullish signal on the monthly timeframe. The Dow Theory is mildly bullish on the weekly timeframe, and both the weekly and monthly OBV indicators are mildly bullish. In terms of performance, Costco's returns have lagged behind the S&P 500 over the past week and month, with declines of 1.24% and 2.76% respectively, while the S&P 500 gained 1.05% and 2.33%. However, over longer periods, Costco has outperformed the S&P 500, with a 3-year return of 88.91% compared to 70.41% for the index. Overall, the current technical stance is mildly bearish, with mixed signals across different indicators....
Read MoreIs Costco Wholesale Corp. overvalued or undervalued?
2025-09-20 17:26:34As of 30 June 2025, Costco Wholesale Corp. has moved from a fair to an expensive valuation grade. The company is currently overvalued, as indicated by its high P/E ratio of 57, a Price to Book Value of 16.59, and an EV to EBITDA of 35.46. In comparison, Walmart, Inc. has a P/E of 39.50 and an EV to EBITDA of 20.06, while O'Reilly Automotive, Inc. shows a P/E of 37.33, highlighting that Costco's valuation metrics are significantly higher than its peers. Despite a strong return over the long term, with a 5-year return of 183.47% compared to the S&P 500's 96.61%, Costco's recent performance has lagged behind the index, with a 1-year return of 6.70% versus 17.14% for the S&P 500. This underperformance, combined with its elevated valuation ratios, supports the conclusion that Costco is overvalued at its current price....
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