{"id":45902,"date":"2025-12-10T11:34:59","date_gmt":"2025-12-10T11:34:59","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/12\/10\/costco-stock-forms-a-bullish-pattern-as-traders-bet-on-a-split-special-dividend\/"},"modified":"2025-12-10T11:34:59","modified_gmt":"2025-12-10T11:34:59","slug":"costco-stock-forms-a-bullish-pattern-as-traders-bet-on-a-split-special-dividend","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/12\/10\/costco-stock-forms-a-bullish-pattern-as-traders-bet-on-a-split-special-dividend\/","title":{"rendered":"Costco stock forms a bullish pattern as traders bet on a split, special dividend"},"content":{"rendered":"
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Costco stock price has come under pressure in the past few months, moving from a high of $1,073 in February to the current $887, a 17% drop. <\/p>\n

It has dropped by 10.1% in the last 12months, underperforming the SPDR S&P Retail ETF (XRT), which has risen by 4%. Walmart stock has jumped by almost 24% this year. So, will the Costco share price rebound after earnings this week?<\/p>\n

Costco vs XRT vs Walmart stock | Source: TradingView<\/figcaption><\/figure>\n

Costco\u2019s business is doing well <\/h2>\n

The main catalyst for the Costco stock price will be its earnings, which will come out on Thursday this week.<\/p>\n

These results are expected to show the company continues to do well as consumers used its stores to find bargains amid the government shutdown and high inflation environment.<\/p>\n

The most recent results revealed<\/a> the Costco\u2019s net sales rose to $86.15 billion in the fourth quarter, up sharply from the $79.9 billion it made in the same period last year.<\/p>\n

The company\u2019s annual revenue rose to $275 billion from $254 billion, making it one of the biggest retail companies in the world.<\/p>\n

Additionally, the company continued to add more members to its stores, with the membership fees rising to $1.72 billion, up sharply from $1.512 billion in the same period last year.<\/p>\n

Most importantly, Costco\u2019s profits continued growing even as Donald Trump\u2019s tariffs affected its operations. The net income rose to $2.6 billion from $2.34 billion, with the annual figure hitting $8 billion for the first time ever. <\/p>\n

READ MORE: 2 reasons why the Costco stock price has collapsed this year<\/a><\/p>\n

Costco earnings are coming <\/h2>\n

Recent releases shows that Costco\u2019s business continued doing well. For example, a monthly report released last week showed that its total comparable sales rose by 6.9% in November, with most of this growth coming from its international business. Its digitally enabled comparable store sales rose by 16.6%.<\/p>\n

Wall Street analysts expect that the company\u2019s results will show that its revenue rose by 8% in the first fiscal quarter to $67.1] billion, while its guidance for the next quarter will be $68.96 billion, up by 8.22% from the same period last year.<\/p>\n

The company\u2019s profitability is expected to accelerate, moving to $4.28 from the $4.04 it experienced in the same period last year.<\/p>\n

According to Yahoo Finance<\/a>, the annual revenue is expected to come in at $297 billion, up by 7.92% from the last financial year.<\/p>\n

Most importantly, Evercore analysts believe that the management will do some more measures to boost the stock. Precisely, they expect that the company will pay a special dividend and even announce a stock split. If this happens, it will be the fourth split after the ones in 1991, 1993, and 2000. Historically, stock prices normally rise after these measures are announced.<\/p>\n

The main concern about Costco is that its stock has been highly overvalued, with its forward price-to-earnings ratio of 44.57 being higher than the sector median of 15. It is also higher than the five-year average of 42.<\/p>\n

Costco stock price technical analysis <\/h2>\n
COST<\/a> stock chart | Source: TradingView\u00a0<\/figcaption><\/figure>\n

The three-day timeframe chart shows that the Costco stock price has been in a strong downward trend in the past few months. This crash happened after the stock formed a double-top pattern at $1,065 and a neckline at $870. A double-top is one of the most common bearish reversal signs in technical analysis.<\/p>\n

On the positive side, the stock has now formed a falling wedge pattern, which is made up of two descending and converging trendlines. In most cases, this pattern often leads to a strong bullish breakout, when the two lines are about to converge.<\/p>\n

Therefore, the most likely scenario is where the stock rebounds and possibly hits the important resistance level at $1,000, which is about 12% above the current level. <\/p>\n

This rebound will likely happen if the company publishes strong financial results, boosts its guidance, announces a special dividend, and a stock split.<\/p>\n

The post Costco stock forms a bullish pattern as traders bet on a split, special dividend<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Costco stock price has come under pressure in the past few months, moving from a high of $1,073 in February to the current $887, a 17% drop.  It has dropped by 10.1% in the last 12months, underperforming the SPDR S&P Retail ETF (XRT), which has risen by 4%. Walmart stock has jumped by almost 24% <\/p>\n","protected":false},"author":1,"featured_media":45903,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":{"0":"post-45902","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/45902","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=45902"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/45902\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/45903"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=45902"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=45902"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=45902"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}