Costco Stock Rebounds on Strong December Sales

Several analysts chimed in with bull notes

Digital Content Manager
Jan 6, 2023 at 8:50 AM
facebook X logo linkedin

Costco Wholesale Corporation (NASDAQ:COST) is working to erase yesterday's pullback, up 2.3% at $460.34 before the bell, following the release of the retailer's December sales results. Costco posted net sales of $23.80 billion last month, marking a 7% year-over-year increase. 

In response, UBS lifted its price target to $600 from $565, while D.A. Davidson raised its price target by $8 to $478. The 12-month consensus price target already sits at $551.77, which is a 22.6% premium to last night's close. Meanwhile, 17 of the 22 in coverage call COST a "buy" or better. 

Options players aren't nearly as optimistic. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), COST sports a 10-day put/call volume ratio of 1.22, which sits in the 86th percentile of its 12-month range. In other words, puts have been more popular than usual. 

With overhead pressure at the 10-day moving average keeping a lid on shares, COST fell back toward its Jan. 3, nearly seven-month low of $447.90. The stock has been on a downward spiral after a rally failed at the $542 mark, putting shares at an 18.1% year-over-year deficit. However, the equity is sitting firmly in "oversold" territory -- with a 14-day Relative Strength Index (RSI) of 21 -- meaning a short-term bounce could be right on the horizon. 


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI