Sell Costco (COST)
We’re going to book our profits in Costco (COST) today. The stock has drifted lower since last Friday’s earnings gap down, and isn’t seeing much of a boost from today’s broad market surge. Sellers are clearly overpowering buyers for the time being.
In addition, earnings estimates for this year and next have fallen, and investors are shunning brick-and-mortar retailers once again.
We bought COST at 112 in February 2014, and sold half our position at 149 in February last year, for a 33% profit. Today’s sale will likely net us a profit of about 48%, for a total return, including dividends, of about 49%.
Sell COST, and put the money to work in other, healthier stocks.