COSTCO STOCK FALLS ON RATING DOWNGRADES
Costco Wholesale Corp.’s stock is currently trading at 285.76-lower by 2.28% as compared to the previous closing price. In the pre-market trading session, the stock was trading lower by 0.88%. The stock has continued falling after the opening bell.
Bernstein downgraded the company’s stock to underperform from market perform. The firm, however, hiked its price target on shares of Costco Wholesale to $230 from $220 citing near term fundamentals. Bernstein believed that market participants have overestimated the growth potential of the wholesale retailer.
Stocks of Costco Wholesale have risen more than 80% since 2017. The firm said investors in the company are overpaying for the quality of earnings, dividends, and defensiveness. Bernstein sees that the wholesale retailer’s growth in China will go more slowly than the market expectation.
On the technical front, the RSI is currently at 47.86% and suggests that the market can move in the downward direction. The current price is below the MA5. The current price is below the middle line of the Bollinger Bands and is heading downwards.
TRADE SUGGESTION- LIMIT SELL AT 286.00 TAKE PROFIT AT 284.20 STOP LOSS AT 286.90