Costco Wholesale and its subsidiaries are principally engaged in the operation of membership warehouses in the U.S. and Puerto Rico, Canada, U.K., Mexico, Japan, Korea, Australia, Spain, France, Iceland, China, and through a majority-owned subsidiary in Taiwan. Co. provides merchandise in the following categories: food and sundries, which include dry foods, packaged foods, groceries, snack foods, candy, alcoholic and nonalcoholic beverages, and cleaning supplies; hardlines, which include appliances, electronics, health and beauty aids, hardware, and garden and patio; fresh foods , which include meat, produce, deli, and bakery; and softlines, which include apparel and small appliances.
When researching a stock like Costco Wholesale, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from COST Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for COST stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the COST 200 day moving average ("COST 200 DMA"), while one of the most popular "shorter look-backs" is the COST 50 day moving average ("COST 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Costco Wholesale. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the COST 200 DMA and the COST 50 DMA, we get a moving average convergence divergence indicator ("COST MACD"). The COST MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |
Video: Technical Analysis