Why Costco Stock Is Poised to Hit $1,000 Again Soon

Core Viewpoint - Costco Wholesale Corp has experienced a significant stock price decline of nearly 15% from its peak, primarily due to a broader market sell-off and a slight earnings miss, despite strong revenue growth [1][5][6] Group 1: Stock Performance and Forecast - The current stock price of Costco is $903.92, with a 12-month price forecast averaging$1,030.43, indicating a potential upside of 14% [1] - Analysts have set a high forecast of $1,175.00 and a low forecast of$890.00 for Costco's stock [1] - The stock has been on a rally since late 2022, reaching an all-time high in February before the recent decline [1][5] Group 2: Earnings Report Analysis - Costco's latest earnings report showed a revenue increase of 9% year-over-year, reaching a new record, but earnings per share (EPS) fell short of expectations at $4.02 compared to the anticipated$4.11 [4][5] - The earnings miss, while not massive, contributed to the stock's decline amid a broader market downturn, with the S&P 500 down nearly 10% [5][6] Group 3: Analyst Sentiment and Technical Indicators - Despite the recent sell-off, many analysts maintain a bullish outlook on Costco, with several firms reaffirming Buy ratings and increasing price targets, such as Evercore ISI raising its target to $1,070 [7][8] - Technical indicators suggest that Costco is currently in oversold territory, with an RSI of 30, indicating a potential for a rebound [10] - The stock is trading near a long-term support line, suggesting that a bottom could be forming, which may attract buyers [11] Group 4: Investment Opportunity - The recent pullback in Costco's stock may present a compelling buying opportunity for long-term investors, as analysts believe the reaction to the earnings miss has been overdone [3][12] - The combination of strong revenue growth and a defensive business model positions Costco well to navigate market volatility [9][12]