What's Going on With Costco Stock Friday?

Costco Wholesale Corp. (NASDAQ:COST) stock fell Friday, underperforming a mixed broader market. The Nasdaq Composite slipped 0.11%, while the S&P 500 rose 0.14%.

Analyst Target Cut Weighs on Sentiment

Investor sentiment remained subdued after JPMorgan lowered its price forecast on Costco to $1,100 from $1,110 while reiterating its Overweight rating. The small reduction suggests the firm remains positive on the retailer’s long-term outlook but sees slightly less near-term upside following the stock’s recent run.

June Sales Show Continued Strength

Costco reported net sales of $29.24 billion for the five weeks ended July 5, 2026, up 10.6% from a year earlier, reflecting resilient consumer demand and steady traffic growth.

U.S. comparable sales increased 10.6%, highlighting continued strength across both discretionary and essential merchandise. Canadian comparable sales rose 3.7%, pointing to more modest growth amid regional spending and currency differences.

For the first 44 weeks of the fiscal year, net sales climbed 10.1% to $250.43 billion. Costco said gasoline price deflation and foreign exchange headwinds weighed on reported results, although underlying demand remained strong.

Technical Setup Remains Weak

Costco remains below several key moving averages, signaling that the stock is still attempting to recover from recent weakness. Shares are trading 4.1% below the 20-day simple moving average, 7.3% below the 50-day SMA, 7.9% below the 100-day SMA and 4.6% below the 200-day SMA.

Momentum indicators also remain cautious. The moving average convergence divergence (MACD) indicator is below its signal line, suggesting bullish momentum has weakened.

The longer-term trend remains constructive because the 50-day SMA is still above the 200-day SMA, preserving the “golden cross” formed in March. However, the shorter-term trend is bearish, with the 20-day SMA below the 50-day SMA.

Over the past 12 months, Costco shares have declined about 5.9% after reaching a peak in May.

Traders are watching resistance near $970, which aligns with the 50-day exponential moving average. Initial support sits around $908.50, where buyers have recently stepped in.

COST Price Action: Costco Wholesale shares were trading lower by 0.5% at $908.42 at the time of publication on Friday, according to Benzinga Pro data.

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