New Costco Price Target, Selling Shares Amid Monthly Comp Sales Gains
Nudging our price target higher, but discipline calls for a rating downgrade.
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| Symbol | Transaction Type | # Shares Traded | Recent Price $ | Shares Owned After Trade | % Portfolio |
|---|---|---|---|---|---|
| COST | Sell | 20 | 1,079.68 | 210 | 4.1 |
After you receive this alert, the Portfolio will sell 20 Costco (COST) shares at or near $1,075. Following the trade, the Portfolio will own 210 COST shares, roughly 4.0% of its assets.Â
While your attention may be understandably on the continued pressure in the Tech sector, our shares of Costco (COST) are pushing higher again on Thursday, being lifted by the company’s latest monthly sales report. For October, net sales rose 12.6% $30.0 billion with adjusted comp sales up 7.3% and up 8.1% in the U.S. E-commerce comparable sales shot up 22.5% for the month and were higher than the just over 19% figure for September.
While we won’t get the October Retail Sales report until November 17, it’s a pretty fair guess to think that Costco continued to win consumer wallet share during the month as consumer battled higher prices for gas, food and other items. While gas prices have come down in recent weeks, for now at least they continue to hover above the closely watched $4 per gallon mark per the latest data from AAA. This reaffirms our view that Costco remains well positioned for the holiday shopping season, and into 2027 as we learn of more companies enacting another round of price increases to offset the impact of higher input costs.
Lifting Price Target, Remaining Prudent
That is leading us to add $25 to our COST price target, taking it to $1,175 from $1,150. However, the pronounced run in COST shares from less than $900 in late September has landed COST shares in an overbought condition with an RSI north of $73.
That same move has COST shares on approach to becoming a 4.5% position size for the Portfolio, and that combination is leading us to do some prudent register ringing with COST shares as well as downgrade our rating to a Two from One. Should we see COST shares push into an even deeper overbought condition, we will remain prudent investors.
As we make this trade, we will also lift the Portfolio’s COST checkpoint to $950 from $900.
(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade’s executed price here. Be sure to toggle the chart to sort by Purchase Date.)
At the time of publication, TheStreet Pro Portfolio was long COST
