Costco Wholesale: Robust Earnings Support Bullish Trend
◉ Technical Observation
● The stock price is exhibiting a strong uptrend, moving within an ascending parallel channel.
● A recent breakout from a rounding bottom pattern has propelled the price higher, nearing the upper boundary of the channel.
◉ Two Possible Scenarios
1. Rejection and Pullback: The price may face resistance at the upper end of the channel, leading to a potential decline.
2. Breakout and Continuation: Alternatively, the price may break through the upper boundary, sustaining the uptrend and driving the stock higher.
◉ Q1 FY25 Result Highlights
● Net Income: Up 13.1% to $1.79 billion, compared to $1.58 billion in Q1 FY24.
● Comparable Sales: Increased by 5.2% in the US and 5.8% in Canada.
● E-commerce: Comparable sales soared by 13%, with adjusted e-commerce comparable sales rising to 13.2%.
● Membership Revenue: Grew by 7.8% to $1.166 billion, reflecting strong customer loyalty.
● Gross Margin: Improved by 24 basis points to 11.28%.
● The stock price is exhibiting a strong uptrend, moving within an ascending parallel channel.
● A recent breakout from a rounding bottom pattern has propelled the price higher, nearing the upper boundary of the channel.
◉ Two Possible Scenarios
1. Rejection and Pullback: The price may face resistance at the upper end of the channel, leading to a potential decline.
2. Breakout and Continuation: Alternatively, the price may break through the upper boundary, sustaining the uptrend and driving the stock higher.
◉ Q1 FY25 Result Highlights
● Net Income: Up 13.1% to $1.79 billion, compared to $1.58 billion in Q1 FY24.
● Comparable Sales: Increased by 5.2% in the US and 5.8% in Canada.
● E-commerce: Comparable sales soared by 13%, with adjusted e-commerce comparable sales rising to 13.2%.
● Membership Revenue: Grew by 7.8% to $1.166 billion, reflecting strong customer loyalty.
● Gross Margin: Improved by 24 basis points to 11.28%.
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