On Thursday, Costco Wholesale earned an upgrade to its Relative Strength (RS) Rating, from 74 to 82. This follows yesterday's move to 74, as the stock continues to build the right-side of a cup pattern.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's unique RS Rating tracks technical performance by using a 1 (worst) to 99 (best) score that identifies how a stock's price performance over the trailing 52 weeks matches up against that of all other stocks.
Over 100 years of market history reveals that the stocks that go on to make the biggest gains often have an 80 or better RS Rating in the early stages of their moves.
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Costco Wholesale is trying to complete a cup without handle with a 564.85 buy point. See if it can clear the breakout price in volume at least 40% above average.
While revenue growth fell last quarter from 16% to 15%, the bottom line grew 8%, up from 2% in the prior report. Look for the next report on or around Dec. 8.
The company holds the No. 1 rank among its peers in the Retail-Major Discount Chains industry group.
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