Costco Gears Up for This Week's Earnings

The equity has a mixed history of post-earnings responses

Deputy Editor
Sep 20, 2022 at 12:58 PM
facebook X logo linkedin

Costco Wholesale Corporation (NASDAQ:COST) is set to step into the earnings confessional after the close on Thursday, Sept. 22. The mega-retailer will report fiscal fourth-quarter results, in which analysts anticipate earnings of $4.17 per share on revenue of $70.8 billion, as well as an increase of 13.7% for same-store sales.

Looking back at the last eight quarters, COST sports a mixed bag when it comes to post-earnings sessions. However, the shares moved higher in three of its last four, losing 1.4% the day after reporting back in March. This time around, the options pits are pricing in a 6% swing, regardless of direction, which is nearly triple the 2.2% move the shares have averaged over the last two years. 

Today, Costco stock was last seen 1.6% lower to trade at $498.54. The security logged three weekly losses in the last four, though the 320-day moving average is keeping this pullback in check. Year-to-date, however, COST remains down 12%.

COST Chart September 202022

Taking a closer look at the options pits, bears have been more active than usual. In fact, Costco stock's Schaeffer's put/call open interest ratio of 1.75 sits in the highest percentile of annual reading. Furthermore, at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity sports a 50-day put/call volume ratio of 0.95, which stands higher than 86% of reading from the past 12 months. Both of these readings indicated a healthier-than-usual appetite for bearish bets. 


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI