Costco Wholesale Corporation (Costco (COST)) shares rose about 2% on Thursday as investors cheered the company's latest monthly sales report and a bounce off a key technical support level. The move came even as the broader market struggled — the Nasdaq Composite fell 0.90% and the S&P 500 slipped 0.18%.

Costco reported May net sales of $24.01 billion for the four weeks ended May 31, up 14.5% from $20.97 billion a year earlier. U.S. comparable sales rose 13.7%, while total company comparable sales increased 12.5%. The standout was e-commerce: digitally enabled comparable sales jumped 21.1%. Excluding gasoline price and foreign exchange impacts, U.S. comparable sales rose 8.7%, and total company comparable sales increased 8.0%.

For the first 39 weeks of fiscal 2026, net sales climbed 10% to $221.19 billion. U.S. comparable sales increased 7.6%, while total company comparable sales rose 8.3%. The strong operating performance helped reinforce investor confidence as the stock attempted to stabilize after pulling back from its May highs.

Technical Picture: Near-Term Pressure, Long-Term Uptrend

Costco is trading 2.6% below its 20-day simple moving average of $1,015.25 and 1.7% below its 50-day simple moving average of $1,006.42, suggesting near-term momentum remains under pressure despite Thursday's bounce. However, the longer-term trend is still intact. Shares continue to trade 3.3% above the 200-day simple moving average of $957.10.

Momentum indicators are cautious. The MACD sits below its signal line, and the histogram remains negative, indicating fading upside momentum. But the broader trend remains constructive because the 20-day moving average is still above the 50-day moving average, and the golden cross established in March remains in place. Key resistance sits near $1,031.50, while traders are watching support around $985.

Quality Over Momentum

Costco earns a strong Quality score of 88.72, reflecting the company's durable business model and consistent execution. Momentum is weaker, with a score of 24.26, while Value scores 44.45 and Growth scores 61.29. The combination suggests investors continue to favor Costco's fundamentals, but the stock may need stronger price momentum before establishing a sustained advance.

At the time of publication, Costco shares were up 2.09% at $981.96.