Costco (COST): Eyeing a Breakout Toward $1,200
Costco (NASDAQ: COST) is showing all the signs of a stock ready to move higher, and we think this is a great time to take a closer look. After dipping a little over 1% this week, Costco’s technical setup is giving us confidence that the pullback could be short-lived.
One key reason we’re optimistic? The stock is forming a cup-and-handle pattern on the weekly chart — a classic bullish setup that signals potential for a breakout. This pattern points to an upside target around $1,200 per share, a level that could be reached if the trend continues. Danielle Shay, vice president of options at Simpler Trading, called attention to this target, and it’s a price point that aligns with the stock’s long-term trajectory.
Beyond the technicals, Costco’s fundamentals continue to hold up well. The company’s consistent foot traffic, loyal membership base, and strong value proposition keep customers coming back, even in a tighter spending environment. Add in a reliable dividend and Costco’s steady track record of earnings growth, and you’ve got a stock that blends both defensive qualities and growth potential.
We like Costco here not just because of the chart, but because the business remains strong at its core. For investors looking for a large-cap name with momentum, stability, and room to run, COST looks like a solid addition to the watchlist.
