Costco Wholesale has been a standout performer this year, surpassing tech giants like Amazon, Tesla, and Microsoft in terms of stock performance. Since January, Costco’s stock has more than doubled that of Amazon and Tesla, and tripled that of Microsoft. The big box retailer is now extending its lead with a fresh breakout.
Costco Smashing Amazon, Tesla, Microsoft This Year
Nvidia has been leading the pack with a 152% gain year-to-date, followed by Meta Platforms with a 46% gain. Surprisingly, Costco has outperformed both of them with a 35% gain, leaving behind other tech giants like Alphabet, Apple, Amazon, and Microsoft. Costco’s stock has even surpassed the performance of Tesla, which is down 14% for the year.
As Amazon, Tesla, and Microsoft struggle below their 50-day moving averages, Costco has recently joined the IBD Breakout Stocks Index as it embarks on a new uptrend.
Costco Stock Shops For A Breakout — And Finds One
Costco’s stock entered buy range on Monday after its relative strength line hit a 52-week high. The retail giant cleared a buy point of 896.67 in an early stage cup pattern and remains in buy range.
While Costco may not be as flashy as other high-growth stocks like Nvidia or Tesla, it has a history of delivering consistent growth. With reliable membership fees driving its revenue, Costco has seen sales growth ranging from 2% to 15% over the last eight quarters.
In its most recent quarterly report, Costco reported a 9% year-over-year revenue increase to $58.5 billion and a 10% rise in earnings to $3.78 per share.
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Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
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