Why is Costco stock up 2.3% today?

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Costco surges 2.39% today on earnings

Highlights

Costco reported fourth-quarter revenue of $95.723 billion and net income of $2.998 billion, with full-year revenue reaching $303.154 billion.
The company ended the year with $20.21 billion in cash, invested $6.435 billion in property and equipment, and plans to open 33 new warehouses in fiscal 2027.
Shares of Costco last traded at $917.93 with intraday strength, but momentum indicators and trend signals remain bearish, with a five-day expected range of $892.11 to $929.84.

Growth investments and expansion plans bolster positive company outlook

Costco reported strong fiscal fourth-quarter and full-year 2026 financial results, with fourth-quarter revenue rising to $95.723 billion and net income reaching $2.998 billion, or $6.75 per diluted share. Full-year revenue was $303.154 billion, and the company ended the period with $20.21 billion in cash. Costco also invested $6.435 billion in property and equipment, paid $2.46 billion in dividends, and spent $848 million on share repurchases. The company plans to open 33 new warehouses in fiscal 2027, with capital expenditures projected at about $7.5 billion.

Anton Kharitonov, expert at Traders Union, views Costco's technicals as concerning despite a post-earnings rally. He highlights that while the revenue and cash position are strong, momentum indicators such as MACD and RSI reveal underlying bearishness. Kharitonov notes the stock is trading above the 20-day moving average but remains below both 50-day and 200-day levels, signaling unresolved downward pressure. Volatility is elevated, and bullish intraday moves lack confirmation from trend strength. "Sustained caution is warranted — fundamentals are solid, but technical weakness and fading momentum put any further upside at risk."

Viktoras Karapetjanc, expert at Traders Union, believes Costco’s results reinforce its strong fundamental base for future expansion. He sees the company’s robust revenue, large cash reserves, and heavy investment in new warehouses as clear signals for ongoing growth. Karapetjanc emphasizes that the operational momentum and aggressive capex will likely fuel further gains, with demand evident despite momentary technical pullbacks. "These figures confirm bullish structure remains intact and I expect Costco to deliver continued upside for forward-looking investors."

Parshwa Turakhiya, analyst, notes the recent upside gap is drawing short-term traders, yet warns that broader sentiment shows hesitation. He observes intraday buying power fighting against negative momentum and weak trend strength, creating fast opportunities for both bulls and bears in coming sessions. Turakhiya highlights that consolidation is likely unless price breaks out decisively above $929.84 or slips below $892.11. "I see sentiment-driven swings dominating the next few days — sharp moves are possible but traders should stay nimble and react quickly to price action."

Bearish momentum persists despite intraday strength and positive gap

Costco is trading above its 20-day moving average at $912.7, but remains below both the 50-day at $934.87 and the 200-day moving average at $960.22. This setup signals short-term support with ongoing medium- and long-term bearish pressure, as $929.84 serves as the near-term resistance ceiling and $912.7 as immediate support. Short-term momentum is negative, as the MACD sits at -15.04 (Strong Sell) and the ADX at 13.66 (Neutral), indicating weak trend strength. The RSI is 38.42 (Sell), the Stochastic RSI is 45.6 (Strong Sell), and the CCI is -57.94 (Sell), all pointing toward ongoing downside or weak recovery, but not yet in oversold territory. Bull/Bear Power at 2.21 suggests buyers dominate intraday action and is registering as overbought. Costco last traded at $917.93, up $21.45 or 2.39% on strong upside gap open (gap size $12.33, 1.38%). The stock is near its intraday high and volatility stands at 1.58%. Despite intraday strength, bearish momentum indicators contradict the short-term rally.

Earlier, analysts noted that Costco's resilient performance and expansion strategy positioned the stock for long-term growth, despite ongoing consumer and industry pressures. The current technical setup introduces a cautious tone, with traders advised to monitor the $929.84 resistance level for a potential breakout or renewed downside risk below $892.11.

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

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