What Makes Costco (COST) a Strong Momentum Stock: Buy Now?

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Costco (COST) currently holding a Momentum Style Score of B [2] - Style Scores complement the Zacks Rank system, which has a strong track record of outperforming the market; Costco has a Zacks Rank of 2 (Buy) [3] Group 2: Costco's Performance Metrics - Costco shares have increased by 6.52% over the past week, while the Zacks Retail - Discount Stores industry has decreased by 0.94% during the same period [5] - Over the past quarter, Costco shares have risen by 14.77%, and they are up 47.49% over the last year, significantly outperforming the S&P 500's gains of 1.43% and 21.95%, respectively [6] - The average 20-day trading volume for Costco is 1,876,515 shares, indicating a bullish sign when combined with rising stock prices [7] Group 3: Earnings Outlook - In the past two months, 6 earnings estimates for Costco have been revised upwards, while none have been revised downwards, increasing the consensus estimate from $17.91 to$18.03 [9] - For the next fiscal year, 7 estimates have moved upwards, with only 1 downward revision, indicating positive earnings momentum [9] Group 4: Conclusion - Given the positive performance metrics and earnings outlook, Costco is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [11]