Costco earnings: Analysts think a membership-fee hike is coming
Costco has built momentum with its popular switch to a Visa card and ‘treasure hunt’ shopping experience Costco’s new Visa card, and its benefit program, are popular with customers and could help boost quarterly results.
Costco Wholesale Corp. is expected to announce second-quarter earnings on Thursday after the market closes. Analysts believe Costco COST, +0.38% is on the path to top-line and same-store sales increases. They also think a membership-fee hike is on the way.
Costco shares have an average analyst rating of overweight with a target price of $175.39, 1% lower than Tuesday’s close of $177.18.
Costco on Course to Raise Membership Fee By 9% (COST)
Analysts at UBS Global Research believe that Costco Wholesale Corp (COST) is likely to increase its membership fees as early as the second quarter. November 2011 was the last time Costco hiked its membership fee.
Should You Sell Costco Wholesale (COST) Before Earnings?
Investors are always looking for stocks that are poised to beat at earnings season and Costco Wholesale Corporation may be one such company.
The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report. That is because Costco Wholesale is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat.
Today’s Trading Lesson…
The market gives us valuable feedback. Most don’t listen until its too late. Through these pages I will show you the brilliant simplicity of tape reading.
The tape knows everything. It’s never wrong. If you’re struggling, the tape will show you what’s missing.
The only barrier between you and anything a trader could desire is one simple fact: Your trading today is the result of what you see, not what you know. Something so important yet misunderstood.
We spend our days searching for the one thing that’s missing. But everything we tried fell short. And so we buy another book or read another blog, or even attempt to see a trading psychologist! Some finally give up and doubt it’s possible.
The answer you seek, the great mystery, is to simply understand what’s on the tape.
Much of this story is from my prop firm, Keystone Trading Group, and after, my work with the largest prop firm in the United States.
You now hold the wisdom of millions of managing those executions and billions of shares traded. At our peak Keystone had nine offices around the world and over 250 traders.
What you seek is now in your hands. The rest is up to you.
On the Tape Today | 3-2-17
BABA Alibaba Group continues to test the $105 level after holding a solid gap higher in January. Game planning a $105.50 buy-stop and a target of $109.75. Stop loss on a close below the $104 level.
YELP bearish pause sets up a day trade short sale. Planning a limit order (higher) @$35.25 and a target to cover for a profit at $33.25. Stop loss on a close over $36.
Tape Reading the SPY ETF
$SPY price action and volume offering the first sign of exhaustion.
Yesterday’s blog post made the call for profit-taking and getting into cash. At the very least the smart trade here becomes–trail with a tight stop. 126 millions shares traded after the Presidents speech, after a solid 2 week rally, all line up to be a short-term top.
Let me repeat, I am not implying a short sale, I am saying don’t get greedy on the longs. Especially if you’re a swing trader. If your positions are technical buy and hold type positions, you are still good.
The bullish order flow has solid footing.
If you are looking for new longs, make sure there is room to go, and not near a Saturation Point, such as this chart of BA.
Stock Market Today: Heatmap of the S&P 500
Stocks to Trade 3-2-17 | Thursday Edition
Short-Term Trading Momentum:
Bullish Momentum: AA, WYNN, SCHW, ATVI, NOV, COP, TSN
Quarterly Order Flow:
Bullish Stocks to Trade: ADSK, PRU, PNC, COF, CTXS, AAPL, BA, UNH, FB, ACN, HD, IBM, AET, AMGN, ABC, AGN, INCY, AMT
Bearish Stocks to Trade: trip, gis, lb, apa, nfx, oxy, kors, rrc, yelp
2x Normal Volume: TGT, LOW, BBY, MYL, CRM, DLTR, AA, AMTD, SRPT, ETFC, ROST, KORS, HTZ, KMX, WYNN, NFX
Inside days: tgt, nvda, kors, dg, nwl, mnst, nflx, ctrp, clvs, grmn, hsic, pcln