Costco (COST) recently reported strong earnings, with Q2 net sales up 9.1% year-over-year and EPS of $5.87 beating estimates. However, the stock has dipped about 4.5% in the past month and is currently trading at $915—well below its recent high of $1,078. The market reaction seems to be a classic "sell the news" scenario, despite robust fundamentals and continued growth in e-commerce and membership revenue. Technical & Analyst Perspective - The technicals show COST is oversold (RSI: 25), with shares now trading below all key moving averages (20, 50, 200-day). - MACD is negative, indicating bearish momentum, but such low RSI levels often precede a short-term bounce. - Analyst consensus remains bullish, with a median price target of $1,046 and several targets above $1,100. The lowest recent target is $907, which is near current levels, suggesting limited downside from here. Fundamentals & Sentiment - Revenue growth remains solid at 5% YoY, profit growth at 17% YoY, and return on equity is a strong 29%. - Short interest is moderate (6.5M shares, 3.74 days to cover), not signaling major bearish bets. - Recent news highlights continued strength in Costco’s business model, with analysts predicting the stock could reach $1,000 in 2026. Will COST Hit $950 Again Soon? Given the technical oversold condition, strong earnings, and bullish analyst sentiment, a rebound toward $950 is likely in the near term—especially if market sentiment stabilizes. While the path to $1,000+ may take time, the risk/reward here favors buying the dip for investors with a medium-term outlook. Key Takeaways - COST is fundamentally strong and oversold after earnings. - Analyst targets suggest upside well above $950. - A move back to $950 is likely as the technical selling pressure eases. If you’re looking to buy the dip, this is a fundamentally supported entry point with a favorable risk/reward profile.