The biggest corporation in the world includes retail companies. It takes a long journey and consistent performance for many years. Only then, they succeed to create a huge user base and investors. The retail sector saw the rise of several giant players in these years: Walmart (NYSE: WMT), Amazon (NASDAQ: AMZN), Home Depot (NYSE: HD), Costco Wholesale (NASDAQ: COST), etc.
Costco Wholesale Sustains Top Position Without Cost Cut
No business could sustain very long and maintain billions of dollars in market cap without unique traits. Costco Wholesale Corporation (NASDAQ: COST) made the membership program its attribute which is resulting to date. It makes COST shares worth holding on to for years. Recently, Costco stock price obtained a 52-week high and is trading at $563.
As The Motley Fool reported, unlike competitors, Costco has one of the lowest markups in the industry at 11%. It plays around with paper-thin margins making it hard for others to cope. The low price for goods and products attracts customers and significant revenue follows after.
Costco revenue saw a 12% annualized growth in the last five years and is expected to increase by a CAGR of 7%. The earnings per share (EPS) of the company is also expected to rise 8% annually for the next three to five years.
The retail giant has annual membership to fill the void created at the margin’s end. Costco had $53.65 Billion in revenue for the last quarter. About a billion dollars were generated from membership marking a 6% rise in a year.
The company has a membership renewable rate of 90%. By May 2023, there were 124.7 Million cardholders, they are likely to grow by 7% annually.
Costco Wholesale (COST) Stock Price Movement
Currently COST stock is trading at a yearly high of $563.32 after a negligible gain of 0.27% in the last intraday session on Friday, July 28th. The recent uptrend streak started from $525, which is acting as immediate support and the price rose 7% in the last three weeks.
Last quarter’s earnings at May-end pushed Costco stock price upwards and it rose nearly 20% since then. It holds strong support at $480. The moving averages saw a golden crossover at the time helping the price to gain upside momentum.
At present, Costco stock is trading above a 50-day EMA of $532 and a 200-day EMA of $509. The gap between the moving averages confirms the uptrend in price.
RSI is at 71 suggesting a bullish trend in COST stock price but a recent decline could make the price face a slight retracement. MACD is above the zero line and maintains the upside curve affirming the up move.
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Source: https://www.thecoinrepublic.com/2023/07/29/costco-stock-price-hits-52wk-high-is-ath-at-610-to-break-soon/