Costco Q1 Results: Can Bullish Momentum Beat Overbought Blues? – Costco Wholesale (NASDAQ:COST)

Costco Wholesale Corporation COST will report its first quarter results on Thursday. Wall Street expects earnings per share of $3.79 and revenue of $62.08 billion, the company reported after-hours.

The stock is up 58.01% over the past year and up 53.50% since the beginning of the year.

Let’s look at what the charts show for Costco stock and how the stock currently compares to Wall Street estimates.

Also Read: Costco’s Q1 Cost Preview: Membership Fee Increase in Focus, Stocks at All-Time Highs

Costco stock shows a mixed technical picture despite a strong uptrend: the share price is at $994.69, above the five-day, 20-day and 50-day exponential moving averages.

Chart created with Benzinga Pro

This positioning generates several bullish signals, including the 8-day SMA at $990.17, the 20-day SMA at $964.53, the 50-day SMA at $923.13, and the 200-day SMA at $840.83.

The MACD indicator (Moving Average Convergence/Divergence) at 21.98 further reinforces the optimistic outlook. However, selling pressure has emerged, coupled with a Relative Strength Index (RSI) of 70.11, which is in overbought territory. This combination suggests the potential risk of a bearish move despite the current bullish momentum.

Reviews and Consensus Estimates: The consensus analyst rating for Costco stock is currently “Buy” with a price target of $954.38. The latest analyst ratings from Oppenheimer, Jefferies and Stifel give Costco shares an upside of 7.01% with an average price target of $1,073.33.

COST Price promotion: Costco shares were up 0.46% at $999.30 at press time on Thursday.

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