Costco Stock Dips on Bear Note

The equity is still up 25% year-over-year

Deputy Editor
Apr 9, 2020 at 10:22 AM
facebook twitter linkedin

Costco Wholesale Corp (NASDAQ:COST) is down 2% to trade at $299.76, after a price-target cut from Deutsche Bank to $295 from $300. The analyst stated that Costco's core same-store sales and U.S. comp sales for March fell short of their expectations, as stock-up strength faded and customers stayed home. 

COST has taken a number of volatile swings since its record high of $325.26 on Feb. 21, amid new social distancing measures such as halting free samples . With consistent support around the $280 region, the equity recently toppled its 120-day moving average for the first time since late March. The equity is up 24.9% year-over-year. 

Analyst sentiment remains optimistic, with 14 out of 21 sporting a "strong buy" or "buy," and six considering a lukewarm "hold," with only one carrying a "strong sell." Meanwhile, the current target price of $323.67 is an 8% premium to current levels. 

The options pits echo optimism as well, with 1.66 calls bought for every put in the past 10 days at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits in the 70th percentile of its annual range, suggesting the appetite for calls is higher than usual.




Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 


300x250 - Banner 3 - v1