COST
New target, same Costco chaos
Costco is doing that thing where a stock looks like it forgot how to sit down. Shares hit a new all-time high Tuesday after Oppenheimer lifted its price target to $1,160 from $1,100 and kept the stock at Outperform.
That’s not exactly a shocking plot twist for a name that already lives in investor favorite territory, but it does add fuel to the breakout. The firm also said Costco remains one of its top picks heading into the company’s May 28th earnings report.
Why the bulls are still circling
Oppenheimer’s logic is pretty classic Costco: the company keeps winning customers with its value proposition, and that strength spills across its stores, online business, and fuel operations. Translation: even when the economy gets weird, people still want bulk toilet paper and cheap rotisserie chicken.
The caution flag? Fuel margins could pressure EPS a bit next quarter. So this isn’t a “nothing can go wrong” call. It’s more like: yes, the stock is expensive, but the business is still flexing.
The chart is hot, maybe too hot
Technically, COST is running rich. The stock is trading well above its major moving averages, and RSI is sitting above 70 — aka the market’s way of saying, “cool it, buddy.” That doesn’t kill the trend, but it does raise the odds of a breather if buyers take a lunch break.
Key support is around $985, which is the level traders will likely watch if the stock finally stops sprinting uphill.
Big picture: Costco got another Wall Street thumbs-up, and that’s enough to keep the momentum party going — even if the stock is starting to look a little overcaffeinated.