10 Mega Cap Stocks Gaining Bullish Momentum This Week

8. Costco Wholesale Corporation (NASDAQ:COST) 

Costco Wholesale Corporation operates a chain of membership-based warehouses. It provides a wide range of private-label and branded merchandise. It offers a variety of merchandise, including appliances, health and beauty aids, candies, sundries, sporting goods, and other products.

There are a few things that are always true for Costco. It always trades at an expensive valuation, it has a unique economic moat, and it makes money with a reliability that no other business in its industry can replicate. The 10% dip in the last month can therefore easily be considered a buying opportunity.

Another thing investors noticed in its quarterly earnings report earlier in the month was that it continues to grab market share from retailers like Target and Walmart on a comparable store basis when it comes to e-commerce, an area that grew 20% in the quarter.

The current market valuation afforded to the stock is indeed high. However, a 10% dip in share price over a period of one month already reflects the uncertainty in the economy. As long as investors believe the stock will trade at a premium to its peers, there is no reason not to buy the stock.