Costco Wholesale Corporation operates a chain of membership-only warehouse stores. Despite its familiar retail presence, the shares continue to exhibit weak relative strength. Costco exited the Favoured Zone on June 30, 2025, at $989.72 with a negative SMAX reading. Since then, the shares have declined 6.58% to a recent close of $924.59, highlighting the value of monitoring relative strength even among widely recognized companies.
Costco currently sits in the Unfavoured Zone at 395th out of 504 positions in the SIA S&P 500 Index Report. Its SIA SMAX score of 2/10 reinforces the weak technical picture. Sector conditions also reflect relative weakness, with Food and Beverages in the Unfavoured Zone, ranking 30th out of 31 sectors in the SIA Sector Report.
Performance reinforces this picture. Costco has declined 2.18% over the past quarter and 5.74% over the past six months, while posting a modest 1.43% gain over the past year. The S&P 500 Index Fund benchmark returned -0.57%, +12.38% and +12.82% over the same periods. Costco has therefore lagged across all three time frames, with a particularly pronounced gap over six months as the shares declined while the benchmark advanced.
On the point-and-figure chart, Costco recently broke below prior support at $994.94, shifting attention to potential support at $883.48, followed by $832.52. Initial resistance sits at the three-box reversal level of $975.43, with further resistance at $1,098.50. Although the last recorded point-and-figure signal is a Spread Double Top, the recent support break, low SMAX score and Unfavoured ranking warrant caution when interpreting that signal in isolation.
Costco illustrates how a well-known company can remain a relative laggard, having underperformed the benchmark across all three reported periods. SIACharts’ relative strength rankings and SMAX readings provide a framework for monitoring that weakness and assessing changes over time. For Costco, an improvement in these measures alongside a recovery through resistance would provide stronger evidence of a change in its current technical position.
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