Costco WholesaleLong
It $COST to be the boss. Own where you consooom!
Key Stats
Top 3 Technical Reasons
Top 3 Fundamental Reasons
Potential Paths to Profit
Disclaimer:
We are not a brokerage or investment firm. We do not offer financial advice or investment advice and/or signals. This is not certified financial education. We offer access to the daily thought process of an individual and his experiences. We do not offer refunds. All sales are final.
- P/E Ratio: 59.3 (premium pricing for a retail juggernaut)
- Revenue Growth: +9.2% YoY in Q1
- Dividend Yield: 0.47%
- Next Earnings Date: Dec 12, 2024 (mark your calendars!)
- Recent Upgrades/Downgrades: Barclays boosted PT to $1150; reiterates Overweight rating.
Top 3 Technical Reasons
- Trend Strength: COST has consistently held its 50-day moving average. Recent breakouts show sustained bullish pressure.
- Volume Surge: Increasing average volume last week suggests accumulation ahead of earnings.
- Bullish Patterns: Breakout from a descending wedge on daily charts; next resistance $600, then $1100 longer-term.
Top 3 Fundamental Reasons
- Membership Growth: Recent 8% YoY growth in executive memberships—Costco’s most profitable revenue stream.
- Earnings Potential: Analysts are anticipating $4.11 EPS for Dec earnings, a steady climb from previous quarters.
- Inflation Hedge: Shoppers flocking to Costco as inflation strains consumers elsewhere—consistent same-store sales increases.
Potential Paths to Profit
- 1. Buy Shares (Lowest Risk): Go long at market price.
- 2. Options Strategy: Consider Jan 2025 $1000 call options for a leveraged bet. Target 2x return on volatility pop post-earnings.
- 3. Swing Trade Opportunity: Enter now, aim to trim partial profits near $600 resistance and ride the rest to $1100.
Disclaimer:
We are not a brokerage or investment firm. We do not offer financial advice or investment advice and/or signals. This is not certified financial education. We offer access to the daily thought process of an individual and his experiences. We do not offer refunds. All sales are final.
Disclaimer
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