Investors should buy Costco stock as it shows bullish trend, says expert
- Danielle Shay, vice president of options at Simpler Trading, discussed her stock picks on CNBC's "Power Lunch".
- She recommends Costco stock, citing a bullish cup-and-handle pattern with a target price of $1,200.
- Shay advises against investing in Nike due to its long-term downtrend and recommends shorting the stock.
In the current financial landscape, expert insights are crucial for investors. On April 25, 2025, Danielle Shay, the vice president of options at Simpler Trading, appeared on CNBC's "Power Lunch" to discuss stock picks from the 2025 CNBC Stock Draft. During her segment, Shay expressed strong bullish sentiments towards Costco, analyzing the stock's chart trends. She identified a 'cup-and-handle' pattern, indicating potential for upward movement, with a price target of $1,200 per share. Shay emphasized Costco's solid fundamentals, such as consistent dividends and high customer traffic as key reasons for her positive outlook. Conversely, Shay highlighted the athletic wear giant Nike as the worst stock pick of the draft. She noted that Nike's stock price has fallen over 56% since 2021, stating that it has been in a persistent downtrend. Although some investors might consider Nike attractive due to its low price, Shay cautioned against purchasing this stock. She indicated that it is unwise to invest in a stock that has been declining long before the recent market corrections. Shay advised investors to consider shorting Nike at price ranges between $60 and $75 per share, predicting its continued downtrend. This contrasting perspective showcases Shay’s analysis of market trends and individual stock performance, guiding investors in making informed decisions. As a trusted source of market information, Shay’s commentary elevates the discourse around stock investment strategies. Her bullish stance on Costco stands in stark contrast to her bearish view on Nike, underlining the importance of thorough analysis when choosing stocks in a fluctuating market. This expert insight is even more valuable in the current economic climate where uncertainty prevails, making it vital for investors to stay informed and strategic about their investments. The CNBC segment provided a space for Shay to share her insights and engage with viewers about their stock choices, delivering critical information that might shape their financial decisions moving forward.