While it doesn't earn the Magnificent Seven moniker, Costco Wholesale has outpaced all of those tech titans this year, except Nvidia and Meta Platforms. Plus, the performance of Costco stock has more than doubled that of Amazon.com and Tesla — and nearly quadrupled that of Microsoft — since January. Now the big box retailer looks to expand that lead as it teases a fresh buy zone.
Costco Smashing Amazon, Tesla, Microsoft This Year
With Nvidia set to report today after the close, Wall Street eagerly awaits what one analyst called the "most important tech earnings in years." Nvidia stock has already delivered the best performance among the Magnificent Seven stocks this year with a 154% gain as of Wednesday's close.
Meta Platforms is next, up 46% this year.
But then comes non-Magnificent Seven company Costco, which has delivered a 35% year-to-date gain as of Wednesday's close. The big box retailer doesn't just top Alphabet, Apple, Tesla, Amazon and Microsoft. It more than doubles all of them. Costco has even nearly quadrupled the 9% gain for Microsoft stock while Tesla is actually down 18% for the year.
And to add insult to injury, as Amazon, Tesla and Microsoft remain mired below their 50-day moving averages and try to cling to their 200-day lines, Costco has just joined the IBD Breakout Stocks Index as targets a record high.
| Company | Symbol | % Gain YTD* | Comp Rating | EPS Rating | RS Rating | SMR Rating |
|---|---|---|---|---|---|---|
| Nvidia | NVDA | 154% | 97 | 99 | 98 | A |
| Meta Platforms | META | 46 | 93 | 97 | 91 | A |
| Costco Wholesale | COST | 35 | 92 | 89 | 92 | B |
| Apple | AAPL | 18 | 90 | 86 | 86 | A |
| Alphabet | GOOGL | 17 | 74 | 98 | 61 | A |
| Amazon.com | AMZN | 12 | 76 | 81 | 55 | A |
| Microsoft | MSFT | 9 | 62 | 93 | 52 | A |
| Tesla | TSLA | -18 | 52 | 57 | 38 | B |
*As of Aug. 28, 2024
See Who Joins Costco On The IBD Breakout Stocks Index
Costco Stock Shops For A Breakout
With its relative strength line already hitting a 52-week high, Costco stock popped into buy range this week. The retail giant cleared an 896.67 buy point in an early stage cup pattern, but slipped 1% below that entry on Wednesday. It fell 2% in below-average volume.
While never a highflying and flashy growth stock in the vein of Nvidia, Meta or Tesla, Costco has a long track record of delivering solid and steady growth. Boosted by its reliable and recurring membership fees, the retailer has posted sales growth ranging from 2% to 15% over the last eight quarters.
In its latest quarterly report on May 30, Costco generated $58.5 billion in revenue, marking a 9% year-over-year gain.
Bottom-line growth has ranged from 4% to 18% over the last eight quarters. In the May report, Costco drove a 10% rise in earnings to $3.78 per share for the quarter.
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Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
