Costco Stock Forecast: An Algorithmic Analysis (COST)

Costco Stock Forecast

I Know First supplies financial services, mainly through stock forecasts via their predictive algorithm. The algorithm incorporates a 15-year database, and utilizes it to predict the flow of money across 2000 markets. The self-learning algorithm uses artificial intelligence, predictive models based on artificial neural networks, and genetic algorithms to predict money movements within various markets.

The algorithm produces a forecast with a signal and a predictability indicator. The signal is the number in the middle of the box. The predictability is the number at the bottom of the box. At the top, a specific asset is identified. This format is consistent across all predictions. The middle number is indicative of strength and direction, not a price target. The bottom number, the predictability, signifies a confidence level.

I Know First published a bullish article on Costco, the second largest retail company in the United States. Having explained how I Know First’s algorithm works, it is worthwhile to see if the algorithm agrees with the bullish fundamental analysis of the company. The three-month and one-year forecasts for Costco are included.

costco stock forecast

Costco is among the top stock picks for both time horizons. The stock has a strong, bullish signal for both, especially during the one-year time horizon. Over the predicted time horizons, the stock price should climb as, the underlying performance of the company continues to far outpace that of the overall retail market. The three-month forecast not being as strong has to do with the potential pullback after the upcoming earnings report, when the currency and gas effects could present a strong buying opportunity for investors.

Positive signal strength does not mean investors should automatically buy the stock. Dr. Roitman, who created the algorithm, created rules for entry for a stock such as Costco. Using this trading strategy, an investor should buy a stock if the last 5 signal strength’s average is positive and if the last closing price is above the 5-day moving average price. When both of these conditions are met, it is a good time to initiate a position in the stock.