Costco Wholesale Corp. kicked off 2026 with a swift 10% advance in its share price following the release of December same‐store sales that exceeded consensus estimates by 120 basis points. The warehouse club reported a 7.8% increase in domestic comparable‐store sales and a 9.2% rise internationally, driven by strong performances in fresh foods and e-commerce. This marked the ninth consecutive month in which Costco saw comparable‐store sales growth above 6%, underscoring resilient consumer demand during the holiday season and providing bullish momentum into the new year.

Chart analysts point to a decisive move above the stock’s nine‐month consolidation range, highlighting a breakout through long‐term resistance near the 200‐day moving average. Trading volume on the day of the breakout was 30% higher than the 30‐day average, a classic confirmation of buying conviction. Additional momentum indicators, including the relative strength index climbing back above 60 and a bullish crossover on the moving average convergence divergence, suggest further upside potential if the shares can sustain this level during institutional trading hours.

Despite the recent surge, Theotrade’s Don Kaufman has expressed a bearish view on Costco, pointing to stretched valuation metrics and rising freight costs that could pressure margins. Kaufman recommends a diagonal put spread in the March options series, selling a slightly out‐of‐the‐money put while purchasing a deeper out‐of‐the‐money longer‐dated put to capitalize on potential downside of up to 8% over the next two months. He cautions that if logistics expenses continue to climb or if consumer spending rotates away from bulk purchases, shares could retrace a portion of the early‐year gains.