Credit: Shutterstock photoOne important metric to look for in a stock is an 80 or higher Relative Strength Rating . Costco Wholesale ( COST ) cleared that benchmark Monday, with a jump from 73 to 81 Monday.
[ibd-display-video id=2881825 width=50 float=left autostart=true] This unique rating measures technical performance by using a 1 (worst) to 99 (best) score that identifies how a stock's price action over the trailing 52 weeks matches up against that of all other stocks.
Over 100 years of market history reveals that the market's biggest winners tend to have an RS Rating of over 80 as they begin their biggest climbs.
See How IBD Helps You Make More Money In Stocks
Costco Wholesale is now considered extended and out of buy range after clearing a 173.19 buy point in a first-stage saucer with handle . See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week moving average.
While sales growth fell last quarter from 16% to 13%, the bottom line grew 21%, up from 18% in the previous report.
The company holds the No. 1 rank among its peers in the Retail-Major Discount Chains industry group. Wal-Mart ( WMT ) and Target ( TGT ) are also among the group's highest-rated stocks.
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
