Costco (COST) Earnings Preview: Can the Warehouse Club Make Wall Street Forget Amazon?
Better-than-expected sales and profits after Thursday’s closing bell would help allay investors’ Amazon.com fears. Don’t blame owners of Costco Wholesale (COST) stock if they’re a little on edge as Thursday’s earnings report nears. After a go-go half-decade that saw shares of this safe consumer staples play more than double between 2011 and 2015, Costco has delivered a total return of just 10% since Jan. 1, 2016.
That’s a bitter pill to swallow when you consider Standard & Poor’s 500-stock index has returned close to 30% in that time. (All prices and returns as of Oct. 2, 2017.) But Costco investors may receive some respite after Thursday’s closing bell.
Costco Traders Are Bullish Ahead of Earnings
As Costco Wholesale Corp. (COST) prepares to report earnings after the close of trading on Thursday, options traders are betting the wholesaler’s stock could rise by roughly 8 percent, bringing shares to nearly $180, and close to its all-time high.
Analysts are looking for Costco’s fourth-quarter earnings to have grown by roughly 14 percent, to $2.02 a share, on revenue of $41.54 billion. Options traders could be feeling bullish about Costco’s stock rising because analysts have increased their 4Q revenue estimates by nearly 3 percent, or $1.1 billion,
since the start of 2017.
Yes, Costco Will Beat. No, It’s Stock Isn’t Heading Higher.
One team of analysts contends that Costco will continue to produce solid results but remains concerned about its valuation.
Recently Costco Wholesale (COST) has released solid earnings and sales updates only to find that it’s stock has gone nowhere…or even headed lower. Will Thursday’s earnings change that pattern?
Today's Trading Lesson
The Only 4 Stages of Price Action You Need to Know
When to trade, or when to be in cash. Know the answer and you become a different trader. We’ve had some amazing success this year with new coaching students implementing this principle.
If you can spot these four scenarios, you can instantly improve your consistency simply by avoiding situations that have little chance to earn money. On the flip side, your trades become easier because you are no longer guessing or fighting the order flow.
Enjoy the video and please feel free to leave any questions.
All the best
Today's Trade of the Day | 10-5-17
M-Macys offering one of the lowest risk short sales today. Wit the stock market short-term over bought, I'm not comfortable going long again today, so I scanned for alternatives. Macy's gives us an inside-inside day setup, looking for two trend days lower into the $19.50 support. Game planning a $20.50 sell stop and stop loss on a trade above $21.
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Trading Wisdom + Personal Development
Stocks to Trade | Thursday Edition 10-5-17
Bullish Momentum: HTZ
Bearish Momentum: jd
Bullish Order Flow: HTZ, DLTR, ADI, CAT, HFC, AMGN, CAR, TXN, LLY, YELP, ROST, AAL, CELG, DE, VLO, LOW, BA, LRCX, COST, HD, PNC, KITE, XLNX, HON, C, DG, PSX, LUV, PYPL, AMAT, MAR, GS, UPS, MA, JPM, BIDU, MU
Bearish Order Flow: momo, wba, khc, pep, k, gis
Double Normal Volume: MYL, NLNK, PEP
Inside Days: wfc, m, roku, hal, xom, ebay, qcom, efx, nov, bsx, wmb, cvx, abbv, phm, tgt, axp, aig, bhge, mcd, car
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