Costco stock price forecast: oversold risk mounts as Costco stock slips to $875

Traders Union
All News
Financial News
Costco slips 1.03% today

Highlights

Costco reported quarterly revenue of $67.31 billion, up 8.3% year-over-year, with earnings per share exceeding analyst expectations.
The company recently paid a quarterly dividend of $1.30 per share and is actively seeking to block federal emergency tariffs on imported goods through legal action.
Institutional activity showed Geneos Wealth Management increased its stake in Costco, while the Public Sector Pension Investment Board reduced its holdings.

Earnings optimism offset by mixed institutional moves and legal actions

Costco reported strong quarterly earnings, with revenue reaching $67.31 billion, up 8.3% year-over-year, and earnings per share surpassing analyst expectations. The company recently paid a quarterly dividend of $1.30 per share and is actively pursuing legal action to block federal emergency tariffs on imported goods. Institutional activity included an increased stake by Geneos Wealth Management and a reduction by the Public Sector Pension Investment Board.

Bearish momentum deepens as oscillators confirm persistent selling

Momentum signals remain negative, with daily MACD and ADX reflecting weak and declining momentum. RSI (40.17), Stochastic RSI, and CCI all suggest the stock is approaching oversold territory. BBP confirms sellers dominate, and the Awesome Oscillator also supports the prevailing downtrend. COST opened almost flat with no significant gap and is now trading near the low end of today’s range, reflecting moderate intraday volatility and continued selling pressure after the open. Oscillators and momentum indicators are aligned, reinforcing the prevailing bearish tone.

Low upside odds as volatility band signals downside risk

The expected trading range for the next five sessions is $849 – $881, representing the typical volatility band relative to current levels. The probability of a sustained price increase is very low (less than 20%), making further downward movement much more likely. Baseline scenario: COST fluctuates sideways between $849 and $881. Bullish scenario: a break above $902 resistance could open the way for a recovery toward the $900s, while a drop below $849 would signal fresh selling and confirm a longer-term downside breakout.

Viktoras Karapetjanc, expert at Traders Union, sees Costco’s robust revenue growth and standout earnings as evidence of fundamental strength even as the stock faces technical headwinds. The analyst believes the company’s proactive stance on tariffs and institutional support point to underlying resilience. He highlights that while momentum remains negative, the fundamentals give Costco a foundation for recovery once market sentiment shifts. "If COST can stabilize above support and macro sentiment improves, a breakout above $902 could be within reach."

Source of Data: COST Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.