Costco Wholesale (COST) stock and three other companies top the IBD Screen Of The Day list as all four exhibit bullish relative strength attributes. The four made the Relative Strength At New High list and are near buy points.
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Along with Costco, Coca-Cola Consolidated (COKE), Fidelity National Information Services (FIS) and eBay (EBAY) have all outperformed the S&P 500 as shown by their relative strength lines at new highs.
Coca-Cola In Three-Weeks Formation
Bottler Coca-Cola Consolidated climbed 3% Monday. The stock is in a three-weeks-tight formation with a 1,374.25 buy point, according to MarketSurge pattern recognition. The entry is also its all-time high, reached on Aug. 23.
Shares bolted higher 8.3% after the company reported 13% second-quarter earnings growth with a 3% revenue increase on July 31. Shares got a two-day boost after it announced a $1 billion stock buyback program on Aug. 21, and raised its quarterly dividend by five times, from 50 cents a share to $2.50 a share.
Coca-Cola Consolidated has been on a steady rise since late May after it broke out of a stage-two cup base following its earnings release in early May. The stock rode its 50-day moving average up along the way and is nearly 13% above the line.
Shares have gained 48% so far this year. The company bottles, sells and distributes beverages for Coca-Cola (KO) and other partner companies.
Costco Stock Flirts With Buy Point
Costco stock gained more than 2% Monday afternoon and flirted with its buy point. The wholesale membership giant broke out of a stage-two cup base with a 896.67 entry on Aug. 27, reaching a record high in the process.
Costco stock reversed lower the next day to close below the buy point. Shares are finding support at their 21-day exponential moving average. Shares have climbed 35% thus far this year, outpacing the S&P 500’s 14% gain.
Costco’s earnings growth has averaged 11% over the last three quarters on an average 7% sales growth over the same time period. Costco stock holds a 5 out of a possible 99 in Investor’s Business Daily’s Earnings Stability Rating. A lower number shows more steady earnings over the last three to five years.
Analysts forecast 10% profit growth for Costco stock during both fiscal 2024 and 2025. Costco reports its fiscal fourth-quarter earnings on Sept. 26.
Fintech Tops Buy Point; eBay Sets Up
Fidelity National gained around 1.6% Monday afternoon. The stock is just above the 5% buy zone of a stage-one double-bottom base with a 77.83 buy point. The buy range goes up to 81.72.
The fintech stock advanced 5.1% following its mixed second-quarter earnings report on Aug. 6. Adjusted profit topped estimates but sales missed views. The stock reclaimed its 50-day line on the move.
Shares have climbed more than 75% from its 52-week low of 46.91 from October 2023 to its 52-week high reached on Sept. 4. But the asset management technology stock has a long way back to its record high of 158.21 reached in February 2020. The stock has climbed 36% so far this year.
Analysts call for 2024 profit to grow 53% and 10% in 2025. Fidelity National is a global provider of financial services technology for financial institutions.
Joining Costco stock in the retail category is eBay, which inched higher Monday. EBay stock is in a three-weeks-tight pattern and nearing its 59.85 entry, which is also its 52-week high. The stock rallied from a buy zone of its previous flat base with a 52.93 buy point after the company beat second-quarter adjusted earnings and sales forecasts on July 31.
Profit growth accelerated to 15% from flat and 13% in the prior two quarters. But sales growth has decelerated to a meek 1% from 5% four quarters ago. Full-year 2024 profit estimates call for a 14% increase followed by 8% in 2025. Shares have risen 36% so far this year.
The company has evolved into an online global marketplace for new and used goods with auction-style and set priced items.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
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