Costco Wholesale saw a positive improvement to its Relative Strength (RS) Rating on Monday, rising from 68 to 71.
When To Sell Stocks To Lock In Profits And Minimize Losses
This proprietary rating measures market leadership by showing how a stock's price movement over the last 52 weeks compares to that of the other stocks in our database.
Over 100 years of market history shows that the stocks that go on to make the biggest gains tend to have an RS Rating north of 80 as they launch their largest runs. See if Costco Wholesale can continue to show renewed price strength and hit that benchmark.
Costco Wholesale broke out earlier, but is now trading around 5% below the prior 1,039.47 entry from a cup with handle. In the scenario where a stock breaks out then falls 7% or more below the entry price, it's considered a failed breakout. If that happens, it's best to wait for a new pattern to form. Also understand that the most recent pattern is a later-stage base, and such bases are more prone to failure.
Earnings growth moved up last quarter from 8% to 13%, but the top line fell from 9% to 8%.
The company holds the No. 2 rank among its peers in the Retail-Major Discount Chains industry group. PriceSmart is the No. 1-ranked stock within the group.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
RELATED:
Retail Industry News And Stocks To Watch
Which Stocks Are Showing Improved Price Performance?
Why Should You Use IBD's Relative Strength Rating?
Ready To Grow Your Investing Skills? Join An IBD Meetup Group!
