COSTCO STOCK FALLS ON RATING DOWNGRADES

Costco Wholesale’s stock is currently trading at 292.69-lower by 1.44% as compared to the previous closing price. In the pre-market trading session, the stock was trading lower by 0.67%. The stock has continued falling after the opening bell.

Oppenheimer downgraded the warehouse retailer’s stock to perform from outperform. The firm, however, slightly raised its price target to $300 per share from $295 per share. Oppenheimer expects less upside for Costco’s stocks due to more premium valuation, potentially aggressive Street forecasts, and difficult compares in the second quarter.

Stocks of the warehouse retailer have risen more than 45% in 2019 due to strong core gross margin and stores opening in China. The firm, however, said Costco’s valuation is now well above past peak levels. Despite the downgrade, the warehouse retailer remains Oppenheimer’s best-positioned company in the consumer staples and food retailing universe.

On the technical front, the RSI is currently at 56.71% and suggests that the market can move in the downward direction. The current price is below the MA5. The current price is above the middle line of the Bollinger Bands but is heading downwards.

 

TRADE SUGGESTION- LIMIT SELL AT 292.95 TAKE PROFIT AT 291.35 STOP LOSS AT 293.75

 

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