Costco Wholesale (COST) didn’t quite make the Magnificent Seven, but it has outperformed every tech giant except Nvidia (NVDA) and Meta Platforms (META) so far this year. Plus, Costco shares have outperformed Amazon.com (AMZN) and Tesla (TSLA) and tripled Microsoft (MSFT) since January. Now, the big-box retailer is widening its lead with another surge.
↑
X
Sharpen your stock market investing skills with the IBD Meetup Group
Costco beats Amazon, Tesla and Microsoft this year
Nvidia is scheduled to report earnings after the close of trading on Wednesday, and Wall Street is eagerly awaiting what one analyst called “the most important tech earnings in years.” Nvidia shares have already been the best-performing of the Magnificent Seven this year, up 159% as of Tuesday’s close.
Next up is Meta Platforms, up 47% this year.
But one company outside the Magnificent Seven, Costco, is up 37% this year as of Tuesday’s close. The big-box retailer isn’t just outperforming Alphabet, Apple, Tesla, Amazon and Microsoft; it’s up more than double all of them. Costco is up more than three times the 10% gain in Microsoft shares, while Tesla is down 16% this year.
To make matters worse, Costco joined the IBD Breakout Stocks Index in a move toward new highs while Amazon, Tesla and Microsoft remain below their 50-day moving averages.
Company Symbol % YTD Upside* Comparative Rating EPS Rating RS Rating SMR Rating Nvidia NVDA 159% 97 99 98 A Meta Platforms META 47 93 97 91 A Costco Wholesale COST 38 90 89 91 B Alphabet GOOGL 18 78 98 70 A Apple AAPL 18 90 86 85 A Amazon.com AMZN 14 77 82 61 A Microsoft MSFT 10 61 93 51 A Tesla TSLA -16 55 57 48 B *As of August 27, 2024
See which companies will join Costco in the IBD Breakout Stock Index
Costco Stock Looks for a Breakout — and It Finds It
Costco shares entered a buying range on Monday with the relative strength line already reaching a 52-week high. The retail giant broke out of an 896.67 buy point in an early-stage cup pattern and remains in a buying range.
While Costco isn’t a high-growth stock like Nvidia, Meta, or Tesla, it has a long history of delivering solid, consistent growth. Fueled by stable, recurring membership fees, the retailer has seen sales growth between 2% and 15% over the past eight quarters.
In its most recent quarterly report on May 30, Costco reported revenue of $58.5 billion, up 9% from the prior year.
Revenue growth over the past eight quarters has ranged from 4% to 18%. In its May report, Costco increased its quarterly profit by 10% to $3.78 per share.
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities ETF (BOUT) from Innovator Capital Management tracks the IBD Breakout Stocks Index. Like other index ETFs, the fund allows you to invest in the entire index in addition to or instead of buying individual stocks. Learn more about the ETF and Innovator here.
Follow Matthew Galgani on X (formerly Twitter) @IBD_MGalgani.
You may also like:
Nvidia stock is facing two tests this week, and investors are facing a third.
Microsoft, NVIDIA Shunned: Meet Wall Street’s New Big Daddy.
Step aside Tesla. This stock needs your Mag 7 card.
Generate new stock ideas with IBD Stock Screener
Identify your base and buy points with this pattern recognition tool
