Costco and Insulet Stocks Surge to New Highs
In the latest stock market developments, both Costco Wholesale (COST) and Insulet (PODD) have experienced significant gains, with each company breaking out of flat bases and reaching impressive new highs. Costco is on track for its sixth consecutive day of gains, while Insulet’s stock soared following a strong earnings report.
Costco’s Impressive Performance
On Thursday, Costco shares climbed by 1.6% after the company reported that its October sales grew by 7.2% compared to the same period last year. This positive momentum continued on Friday, with the stock gaining an additional 3.7% in the afternoon trading session. The surge was further fueled by Bernstein raising its price target for Costco from $1,016 to $1,062, propelling the stock to an all-time high.
Costco’s stock broke past the buy point of 923.83 on Friday, supported by heavy trading volume. Currently, shares are in a 5% buy zone, extending up to 970.02, according to MarketSurge’s pattern recognition analysis. The stock has seen a remarkable 43% increase year-to-date, although its relative strength line has not mirrored this rise.
Despite the stock’s impressive performance, Costco’s fiscal fourth-quarter earnings revealed a deceleration in profit growth, which fell to 6% from previous gains of 10% to 12%. Additionally, revenue growth slipped to 1%, down from increases of 6% to 9% in prior quarters. Looking ahead, estimates for the fiscal first quarter indicate a further 6% profit increase, with projections ramping up to 11% over the subsequent two quarters. Sales are expected to rise by an average of 7% over the next four quarters.
Insulet’s Earnings Surprise
Insulet, a leading manufacturer of insulin delivery systems, also saw a significant boost in its stock price. The company broke out of a flat base with a buy point of 243.98, experiencing a midday surge of around 12% on Friday, reaching its highest price point since early August 2023. The stock’s upward trajectory was prompted by Insulet’s impressive third-quarter earnings report, which exceeded both earnings and sales expectations.
Insulet’s profit growth for the quarter slowed to 27%, accompanied by a 26% increase in revenue. The company provided guidance for fourth-quarter sales growth between 12% and 15%, while also raising its full-year 2024 sales growth estimate to a range of 20% to 21%.
Looking ahead, profit estimates for full-year 2024 indicate a robust 31% increase, although growth is expected to ease to 9% in 2025. Additionally, sales growth is projected to range from 13% to 18% over the next four quarters, with a notable 22% increase anticipated in Q1 2025.
Insulet’s flagship product, the Omnipod, is a wearable insulin pump designed to eliminate the need for multiple daily injections for those living with diabetes, enhancing the quality of life for many patients.
As both companies continue to demonstrate strong performance, investors are closely monitoring their stock movements and growth potential in the coming quarters.
Stay tuned for more updates on stock market trends and insights into the best-performing companies.
