Costco Wholesale Corp (COST  ) shares are trading lower Thursday morning as investors continue to weigh the company's June sales update. The move also follows a price-target cut from JPMorgan analyst Christopher Horvers, who maintained an Overweight rating on Costco but lowered the firm's price target from $1,110 to $1,100.

What's Driving Costco's Recent Sales Growth?

Costco said net sales reached $29.24 billion for the five weeks ended July 5, 2026, up 10.6% from the same period last year, with U.S. comparable sales also up 10.6% and Canada comps up 3.7%. For the first 44 weeks of the fiscal year, net sales totaled $250.43 billion, up 10.1%, though management flagged gasoline price deflation and foreign exchange as headwinds.

Costco's regional split is also part of the read-through, with U.S. comps up 10.6% versus Canada at 3.7%, reinforcing that FX and local demand differences can matter even when the headline growth rate looks clean. That unevenness can amplify positioning moves when the stock is already trading heavy.

Critical Price Levels To Watch For COST

From a trend perspective, Costco is below its key moving averages, trading 4.7% under the 20-day SMA ($955.46), 7.7% below the 50-day SMA ($987.00), and 4.8% below the 200-day SMA ($956.93). The 20-day SMA sitting below the 50-day SMA keeps the near-term setup bearish, even though the longer-term "golden cross" (50-day above 200-day) that formed in March is still technically intact.

For momentum, MACD is below its signal line with a negative histogram, which typically means upside pressure is fading unless buyers can push the stock back above that baseline. Put simply: when MACD is under its signal line, rallies tend to lose steam faster, so bulls usually want to see that relationship flip before leaning in.

  • Key Resistance: $970.00 - a round-number area that also sits near the 50-day EMA ($972.88), where rebounds can stall
  • Key Support: $908.50 - a nearby pivot zone just under the current price that can act as a "line in the sand" for dip buyers
Costco's Benzinga Edge Rankings Explained

Below is the Benzinga Edge scorecard for Costco Wholesale, highlighting its strengths and weaknesses compared to the broader market:

  • Momentum: Weak (Score: 28.21) - The stock's recent tape is soft versus the broader market, lining up with price sitting below key moving averages.
  • Quality: Strong (Score: 84/100) - The business scores well on durability and execution, which can help explain why longer-term investors often defend pullbacks.
  • Value: Neutral (Score: 45.63) - The stock doesn't screen as cheap, and the premium valuation can amplify downside when expectations are already high.
  • Growth: Neutral (Score: 40.5) - Growth is present, but the score suggests it's not currently the dominant driver versus quality and sentiment.
The Verdict: Costco Wholesale's Benzinga Edge signal reveals a quality-led profile with weak near-term momentum and only middling value support. For longer-term bulls, that often means waiting for momentum to stabilize (or key support to hold) before treating dips as higher-conviction entries.

COST Stock Price Activity on Thursday

COST Stock Price Activity: Costco Wholesale shares were down 4.46% at $910.64 at the time of publication on Thursday, according to Benzinga Pro data.