$COST with a bullish outlook following its earnings #StocksThe PEAD projected a bullish outlook for NASDAQ:COST after a negative under reaction following its earnings release placing the stock in drift D with an expected accuracy of 80%.
CTO trade ideas
Costco's Strong Earnings Amid Slowing Sales Growth: What’s Next?Costco Wholesale (NASDAQ: NASDAQ:COST ) delivered a mixed bag in its latest fiscal fourth-quarter report, with earnings beating estimates but revenue coming in slightly below expectations. The company’s net income jumped 7% year-over-year to $2.35 billion, or $5.29 per share, topping analysts’ estimates of $5.08 per share. However, revenue rose by just 1% to $79.7 billion, falling short of the $79.97 billion forecasted by analysts.
E-Commerce Growth Slows, But Still Impresses
While Costco’s e-commerce sales grew by 18.9% year-over-year, this was a slowdown compared to the 20% surge seen in the prior quarter. As online shopping habits continue to evolve, this deceleration in growth has raised eyebrows among investors, even though the numbers still reflect strong overall demand. CFO Gary Millerchip acknowledged the shift in consumer spending, noting that customers are being "very choiceful" in where they allocate their dollars, especially in the face of promotional deals in key categories like appliances and electronics.
Membership Fee Hike: A Watchpoint for Investors
Costco’s report was also significant because it came on the heels of the retailer’s first membership fee hike in six years, which took effect as the quarter ended. While the higher fees did not impact Q4 results, investors will be closely monitoring how these increased costs will affect future earnings. The membership model is a cornerstone of Costco’s business, and any shift in renewal rates could significantly affect long-term growth.
Mixed Sales Results: Same-Store Sales Hit by Gas Prices
Same-store sales, excluding gasoline, rose by 5.4%, which was short of expectations and a drop from the 6.6% growth recorded in the previous quarter. Lower gas prices and cautious spending on big-ticket items like furniture and electronics contributed to the slowdown, even as demand for essentials like groceries remained strong. This cautious consumer behavior could be an early signal of broader economic challenges.
Technical Outlook
On the technical front, NASDAQ:COST is currently down 1.55% in premarket trading, within a falling trend channel. With an RSI of 54, the stock is holding just above a key support pivot, indicating some resilience. Historically, NASDAQ:COST has shown a knack for rebounding after periods of consolidation, and the current setup suggests the potential for another upward move. The stock has been on a tear this year, gaining roughly 37% so far, and any break above the current trend channel could trigger further gains.
The Bigger Picture: Is NASDAQ:COST Still a Strong Buy?
Despite the near-term revenue miss, Costco’s long-term growth story remains intact. Its ability to maintain strong earnings growth, coupled with its expansion in e-commerce and global markets, positions it well for future success. However, the impact of rising membership fees and evolving consumer spending patterns will be critical factors to watch in the coming quarters.
As investors digest these results, the key question remains: Can Costco maintain its growth trajectory in a more cautious consumer environment? With its strong fundamentals and track record, the stock may remain an attractive option for those looking for long-term value in a competitive retail space.
Gets back into the green shade of 850Trend the same, but after the catalyst of earnings, we could see a retrace of around 5% or more based on previous data. Technicals are heading down towards this area. Trend has not changed in the short term looks like a correction but also a continuation of the current trends in the long term.
Cost: next leg up ? FibFun
This is what I found in most bullish and bearish retracements , once you get 100% retracement of up or down move then next level is normally 1.618. If it retrace up to 50% after 100% then it's even more bullish, if it goes under 50% after 100% then it's super bearish. Have fun finding 50-100% fib retracements.
COST: 100% retracement done and now 1.618 level is coming This is what I found in most bullish and bearish retracements , once you get 100% retracement of up or down move then next level is normally 1.618. Have fun!
COST only up?This name is an absolute monster,
Another trendline break and above Fridays high at 907.92 can retest ATH at 923.22
It has ER this week, so can be a risky
COST Costco Wholesale Corporation Options Ahead of EarningsAnalyzing the options chain and the chart patterns of COST Costco Wholesale Corporation prior to the earnings report this week,
I would consider purchasing the 907.5usd strike price Calls with
an expiration date of 2024-9-27,
for a premium of approximately $20.85.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Costco Wholesale deep diving into the fundamentals Sale Post ER?NASDAQ:COST is an interesting company that benefits from inflationary conditions where consumers are looking for cheaper products or more product for their money. Costco is aided from its membership business model. The Stock itself rallied 38.35% YTD "Year to Date" and 60.79% in the last Year "365 Days" I personally like the stock but think due to the valuation like the PE Ratio that is high to me personally, and the forward PE Ratio doesn't seem like the best price to me as a new investor with a short term interest, I would not personally add this stock to my portfolio until I see the stock pull-back in Share Price, Price to sales seems decent but I am hoping for a share price pullback which may never happen. I Put an idea/Chart that I Would not be too surprised if it played out that way but it could also be inaccurate. Only Time Will Tell! I am not initiating Buy, Sell, Or Hold Opinions and you should take No action suggestion
-------------------
Balance Sheet:
Cash: US$11.50b
Debt: US$6.91b
Total Liabilities: US$46.14b
Total Assets: US$67.91b
Debt to Equity Ratio: 31.7%
-------------------
Technicals:
RSI: 59
Short Interest: 1.66%
-------------------
Valuation:
PE Ratio: 56.1x
Forward PE Ratio: 52.3x
Price to Sales: 1.6x
Price to book Ratio: 18.5x
-------------------
Management Ratios
Return On Equity: 32.9%
Return On Capital Employed: 27.7%
Return On Assets: 9.9%
-------------------
Disclaimer: I am not a financial advisor and in no way am I signaling a sell, buy, or hold opinion on this stock (Costco Wholesale) I am just giving my personal opinion as a hobby trader, I have no certifications and I am not a financial analyst or a financial advisor, I also may be wrong about how I feel about the stock. I want you to do plenty more research on this and the stocks you are interested in because the stock market always holds a lot of risk that may pose different risks and overall be different for each investor and trader. Please do not make opinions based on this idea or any idea. Please be careful! this post is only for conversation.
-------------------
Idea:
-------------------
Source: SimplyWallSt for the Balance Sheet Numbers & Balance Sheet information.
Costco Aiming for New All-Time High?Costco has breached the resistance which was also an all-time high resistance.
Costco has consistently exceeded quarterly estimates in recent quarters, enhancing its appeal even at its all-time high.
If you want to open a long position or are willing to invest, consider entering at a price level between 911 and 915 with a stop loss between 895 and 900.
"Could there be a potential breakout at Costco?"Costco Wholesale Corporation is currently reaching an all-time high and approaching a significant resistance level. It is poised for a potential breakout, so keep a close watch and wait for the price to convincingly surpass the resistance level before considering any action.
COST is this a real Trend I spotted ??!Noticed a possible Bull trend forming, I like to think in 3's, so this may be the last Bull Phase??
Cup and Handle formationCostco looks to be forming a solid Cup and Handle formation on the Daily chart ahead of earnings. I am bullish on Costco. What are your thoughts?
COST (2) - New TargetsCOST continues to have the support of FiboClouds for appreciation within the H4 to W timeframe, which is sufficient to reach the first target and attempt further targets, provided that the stop loss is properly repositioned at the time of the first partial realization.
If this projection is confirmed and a partial realization occurs at the first target, the stop loss should be moved from its initial position to the same line where the position was opened.
In this way, the journey towards the final target will proceed with reduced risk of losses and the preservation of partial gains achieved so far.
Follow us to receive notifications of new trades, as well as frequent updates on ongoing trades.
Finally, if you agree with the idea or found it useful, please give it a BOOST so that it can reach a larger number of people!
COST is BearishPrice was in a strong uptrend, however a bearish divergence led to the break of previous higher low and it seems that bears have taken control of the price action. first lower low is printed successfully, and if that is broken we can expect more downside movement as per Dow theory. Targets are mentioned on the chart.
COSTBest cost
I am an amateur trader. I sometimes enter into trades. Other times it is only an analysis. Trade with your own risk awareness.
Costco Bear HuntJust in case there will be events and information that might lead to a bearish mood for this stock, here are some elements that might act as support/resistance in the evolution of the price. There is also the potential of a continuation after a rebound from one of the elements on the up which should probably not be disconsidered.
Coco Bongo Stuff. Not sure this will break the record of the Pinball Job on AAPL. At least 3 rebounds would suffice, although ONE could be just enough.
One thing to look out in candlestick analysis for this specific project, will be Candlestick Shadows, Especially if they appear in formations of more than one near the price same level.
Earnings coming soon, and if the price jumps up on good numbers and news, will still be looking for potential rebounds from the elements left for potential corrections, or even turnarounds.
$COST shortNASDAQ:COST formed a very clear Head & Shoulders at the top of the chart and should be heading down to $810's. I love Costco and all but this is going to be a very nice short. Will it go there or will it go against nature and chart patterns?
COST - Costco Wholesale Corp - Buy Idea 27.06.2024Here the price has made new high and there is demand zone at around 78.60% Fibonacci level. We expect the price to make a retracement to this zone and from there to see the new bullish impulse. We have to wait for the RSI indicators to be at oversold level for confirmation.
COST SELL!!!Another overbought overvalued stock which needs to pullback at best before maybe printing a new high. Targets $804.84, $783.46 and $762.08 then reassess
COST, a Portfolio gem -- buy on dips / bargains, STABLE GROWTH.COST has been a staple go-to-retail outlet to US consumers. Costco Wholesale Corporation operates an international chain of membership warehouses, mainly under the "Costco Wholesale" name, that carry quality, brand-name merchandise at substantially lower prices than are typically found at conventional wholesale or retail sources.
It has been a rosier season for COST, as they beat earnings across the board in their recent quaretly fiscal data.
(USD) May 2024 Y/Y
Revenue 58.52B 9.07%
Net income 1.68B 29.11%
Diluted EPS 3.78 29.01%
Net profit margin 2.87% 18.11%
Operating income 2.2B 11.13%
Net change in cash 1.31B 374.42%
Cash on hand - -
Cost of revenue 51.17B 9.16%
The retail company has seen a +20% surge in the the last 8 weeks jumping from 700 to 850 range. Growth will be inevitable going forward as the company undergoes aggressive expansion and marketing campaigns to beat their counterparts with the likes of TARGET, etc.
The current price of COST is already at premium levels. We may want to see a trim down to EQL levels before re-entering. But this only applies if your swing trading this, otherwise, if you're into investing mode and plan to hold it for a bit, this won't matter.
At this point, profit-taking event may be inevitable anytime now, but just the same, it will be an opportunity to buy the stock on a discount when that time comes.
TAYOR.
COST - New wave of appreciationContinued appreciation supported by the alignment and compression of multi-term fibo clouds
Risk x Return = 3 for the same risk management that has been practiced in the other operations published in our profile
Follow us to receive updates and new publications
800 won't hold.It has been in the news for a while; the uncertainty that this will continue without some correction isn't a good strategy; it is not a question of how rather than when.
Is a buying opportunity coming?With resistance at 820 is respecting the pinball forecast, with last week’s candle structure indicating a pullback is possible. While it is possible for the current wave structure to push higher, the RSI divergence supports otherwise. While any pullback would need evaluation, it may lead to a great buying opportunity.
