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Costco Downgraded to “Underperform” at BMO Capital (COST)

Membership warehouse operator Costco Wholesale Corporation( COST

) on Monday caught a downgrade from analysts at BMO Capital.

The firm cut its rating on COST from "Market Perform" to "Underperform." Costco is currently battling Australian retailers Woolworths and Coles, accusing the retail giants of trying block its expansion efforts down under.

Costco shares fell 49 cents, or -0.8%, in premarket trading Monday.

The Bottom Line

We had removed shares of COST from our "recommended" list Sept.22, 2008,when the stock traded at $66.09. The company has a dividend yield of 1.28%, based on Friday's closing stock price of $64.29. The stock has technical support in the $60 price area. If the shares can firm up, we see overhead resistance around the $66-$68 price levels. We would remain on the sidelines for now.

Costco Wholesale Corporation( COST ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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