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Forget Amazon And Tesla. This Non-Magnificent Seven Stock Is Soaring.

2024.08.28

While it doesn't earn the Magnificent Seven moniker, Costco Wholesale (COST) has outpaced all of those tech titans this year, except Nvidia (NVDA) and Meta Platforms (META). Plus, the performance of Costco stock has more than doubled that of Amazon.com (AMZN) and Tesla (TSLA) — and tripled that of Microsoft (MSFT) — since January. Now the big box retailer is expanding that lead with a fresh breakout.

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Costco Smashing Amazon, Tesla, Microsoft This Year

With Nvidia set to report today after the close, Wall Street eagerly awaits what one analyst called the "most important tech earnings in years." Nvidia stock has already delivered the best performance among the Magnificent Seven stocks this year with a 159% gain as of Tuesday's close.

Meta Platforms is next, up 47% this year.

But then comes non-Magnificent Seven company Costco, which has delivered a 38% year-to-date gain as of Tuesday's close. The big box retailer doesn't just top Alphabet, Apple, Tesla, Amazon and Microsoft. It more than doubles all of them. Costco has even more than tripled the 10% gain for Microsoft stock while Tesla is actually down 16% for the year.

And to add insult to injury, as Amazon, Tesla and Microsoft remain mired below their 50-day moving averages, Costco has just joined the IBD Breakout Stocks Index as it launches a move to fresh highs.

Company	Symbol	% Gain YTD*	Comp Rating	EPS Rating	RS Rating	SMR Rating
Nvidia	NVDA	159%	97	99	98	A
Meta Platforms	META	47	93	97	91	A
Costco Wholesale	COST	38	92	89	91	B
Alphabet	GOOGL	18	74	98	61	A
Apple	AAPL	18	90	86	86	A
Amazon.com	AMZN	14	76	81	55	A
Microsoft	MSFT	10	62	93	52	A
Tesla	TSLA	-16	52	57	38	B

*As of Aug. 27, 2024

See Who Joins Costco On The IBD Breakout Stocks Index

Costco Stock Shops For A Breakout — And Finds One

With its relative strength line already hitting a 52-week high, Costco stock popped into buy range this week, where it remains. The retail giant cleared an 896.67 buy point in an early stage cup pattern and currently trades 1% above that entry.

While never a highflying and flashy growth stock in the vein of Nvidia, Meta or Tesla, Costco has a long track record of delivering solid and steady growth. Boosted by its reliable and recurring membership fees, the retailer has posted sales growth ranging from 2% to 15% over the last eight quarters.

In its latest quarterly report on May 30, Costco generated $58.5 billion in revenue, marking a 9% year-over-year gain.

Bottom-line growth has ranged from 4% to 18% over the last eight quarters. In the May report, Costco drove a 10% rise in earnings to $3.78 per share for the quarter.

IBD Breakout Opportunities ETF

The IBD Breakout Opportunities ETF (BOUT) from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this fund allows you to invest in the entire index in addition to, or rather than, buying individual stocks. Learn more here about the ETF and Innovator.

Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.

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