Costco stock holds steady as record earnings fail to lift bearish sentiment

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Costco slips 0.29% to $860.46 today

Highlights

Costco reported record first-quarter fiscal 2026 revenue of $67.31 billion and earnings per share of $4.50, both above expectations.
Steady sales and profit growth were driven by increasing net income and strong consumer demand in both store and online channels.
Membership fee income remained a key profitability driver, though renewal rates dipped slightly due to higher digital sign-ups.

Profit growth outpaces expectations as consumer demand remains robust

Costco reported record first-quarter fiscal 2026 results, with revenue of $67.31 billion and earnings per share of $4.50, both surpassing expectations. The company continued to post steady sales and profit growth, fueled by rising net income and robust consumer demand across store and online channels. Membership fee income remained a substantial contributor to profitability, despite a modest dip in renewal rates linked to an increase in digital sign-ups.

Bearish momentum aligns with oversold signals and muted volatility

Momentum indicators remain weak, with both MACD and ADX reflecting sellers' control and limited trend strength. Oscillators—RSI (33.89), Stoch RSI (7.40), and CCI (-136.21)—all point to oversold conditions, while BBP’s negative value confirms ongoing seller dominance intraday. The Awesome Oscillator is also negative, reinforcing the downtrend. The stock opened slightly lower with no significant gap from the previous close and is currently trading in the lower part of today’s range ($852.70 — $862.22) after slipping 0.29%, reflecting low volatility and continued pressure after the open. While momentum and oscillator readings consistently signal bearishness and oversold territory, the absence of divergence underscores alignment between intraday performance and overall trend signals.

Further downside favored as narrow range limits rebound hopes

For the coming week, the expected price range is $825 to $865, capturing a volatility band relative to current levels and avoiding extreme swings. The probability of a price increase is very low (less than 20%), while a further decline remains much more likely according to weekly trends. In the baseline scenario, Costco is likely to consolidate sideways within this range. A bullish scenario would require a decisive move above resistance at $886, which appears unlikely given broad weakness, while a break below support around $825 could accelerate the downtrend.

Anton Kharitonov, expert at Traders Union, sees continued bearish pressure on Costco despite solid earnings growth. He notes weak momentum and oversold signals, with no technical evidence of a reversal. Kharitonov remains cautious, seeing consolidation most likely unless resistance at $886 is broken. "Without a clear break above key resistance, my base case is sideways to lower — risk remains tilted to the downside."

Last time, analysts noted that Costco shares remained under persistent selling pressure, trading below all major moving averages and exhibiting weak momentum as confirmed by oversold RSI, MACD, and other oscillators. The stock is consolidating within a defined range, encountering strong resistance near $886 and showing little support above $835, with technical signals indicating continued downside or sideways movement in the near term.

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.