For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Is This 1 Momentum Stock a Screaming Buy Right Now?
Different than value or growth investors, momentum-oriented investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
Costco (COST)
Based in Issaquah, Washington, Costco Wholesale Corporation sells high volumes of foods and general merchandise (including household products and appliances) at discounted prices through membership warehouses. It is one of the largest warehouse club operators in the United States. The company also operates e-commerce sites in the United States, Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan and Australia.
COST sits at a Zacks Rank #3 (Hold), holds a Momentum Style Score of B, and has a VGM Score of B. The stock is up 1.2% and up 7.5% over the past one-week and four-week period, respectively, and Costco has gained 63.4% in the last one-year period as well. Additionally, an average of 1,739,836.25 shares were traded over the last 20 trading sessions.
A company's earnings performance is important for momentum investors as well. For fiscal 2024, six analysts revised their earnings estimate higher in the last 60 days for COST, while the Zacks Consensus Estimate has increased $0.14 to $16.14 per share. COST also boasts an average earnings surprise of 2.3%.
COST should be on investors' short list because of its impressive earnings fundamentals, a good Zacks Rank, and strong Momentum and VGM Style Scores.
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COST has a Momentum Style Score of B, and shares are up 5.2% over the past four weeks. Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2024, while the Zacks Consensus Estimate has increased $0 to $16.22 per share. COST also boasts an average earnings surprise of 2.3%.
The Zacks Consensus Estimate has increased $0 to $16.27 per share. COST boasts an average earnings surprise of 2.3%. Investors should take the time to consider COST for their portfolios due to its solid Zacks Ranks, notable earnings metrics, and impressive Momentum and VGM Style Scores.
The key to momentum investing is being able to capitalize on volatile market trends. Momentum investors look for stocks to invest in that are on their way up and then sell them before the prices start to go back down. For such investors, being ahead of the pack is a way to maximize return on investment.
Costco has a consensus rating of Strong Buy which is based on 18 buy ratings, 5 hold ratings and 0 sell ratings. The average price target for Costco is $933.75. This is based on 23 Wall Streets Analysts 12-month price targets, issued in the past 3 months.
It looks to be in a good position to rally in the latter half of the year and possibly hit the $1,000 mark, but even if it doesn't, it may only be just a matter of time before that happens.
The stock's outperformance has come with consistently strong sales growth, loyal membership, and an increased global footprint. None of that has changed, as shoppers are still flocking to its stores: At a time when inflation is still biting, cheap eats and bulk value are resonating with many consumers.
Momentum trading involves entering a stock position as its price begins to ascend and exiting as soon as it starts to decline. This strategy is based on the observation that stock prices often do not reflect their true value for prolonged periods, and they tend to move in a single direction for extended durations.
Following the stock market trend is a safe and risk free way to find momentum trading stocks. Strong stocks: The pace of momentum determines if a stock is strong or weak. If the movement is higher than the market rate, it is a stronger stock, and a slower pace determines weaker stocks.
The Moving Average Convergence Divergence (MACD) is one of the most popular momentum indicators. The MACD uses two indicators – moving averages – turning them into an oscillator by taking the longer average out of the shorter average.
Compared to its peers, Costco's price-earnings ratio is significantly higher at 3 times the industry median. The PEG ratio, which incorporates expected growth, is not any better, and is also 3 times the industry median.
Costco stock is up 33% this year, and it keeps beating the market despite its high valuation. It should continue to beat the market over the long term, and it's likely to join the half-a-trillion-dollar market cap club by 2026.
What percentage of Costco (COST) stock is held by retail investors? According to the latest TipRanks data, approximately 44.94% of Costco (COST) stock is held by retail investors. Who owns the most shares of Costco (COST)? Vanguard owns the most shares of Costco (COST).
According to analysts, COST price target is 890.39 USD with a max estimate of 1,050.00 USD and a min estimate of 676.00 USD. Check if this forecast comes true in a year, meanwhile watch Costco Wholesale stock price chart and keep track of the current situation with COST news and stock market news.
Key Points. Costco is about to hit $1,000 a share, meaning it is poised to split its stock. The business is thriving but trades at an expensive valuation. Investors should ignore a potential stock split and focus on the business fundamentals.
Consumer staples stocks are often favoured by more risk-averse investors that are looking for safe returns and dividends with low volatility. Examples include: Food and beverage brands and outlets (McDonald's, PepsiCo, Kraft Heinz) Supermarkets (Walmart, Tesco, Costco)
If the OPscore of a stock is high, then it could be considered a strong stock which is in good momentum. If the OPscore of a stock is low, then it is considered a weak stock. Now when you see a technical structure (5D- Candles) happening in a stock, which is bullish or bearish, it is recommended to take the position.
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