Costco Rises on Strong Earnings, Positive Analyst Response

COST stock is filling its bear gap that came after last quarter's earnings release

Mar 8, 2019 at 9:55 AM
facebook X logo linkedin

Costco Wholesale Corporation (NASDAQ:COST) is trading up 4% at $225.50, after the company's fiscal second-quarter earnings came in substantially higher than analysts expected, with investors applauding an easing of pricing pressure in the grocery business. Several price-target hikes have come through following the report, and UBS set the highest mark at $270.

Moreover, J.P. Morgan Securities set a $248 price target, up from $240, and said the results increase the chances of a special dividend from Costco. Investment research firm Gordon Haskett said the company's size should help it obtain products cheaply, and it will especially benefit in areas where prices are rising due to tariffs.

Heading into earnings, call buying was prevalent at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Data there shows a 10-day call/put volume ratio of 1.67, a reading that ranks in the 85th annual percentile. There was also notable selling at the March 230 call, which saw the largest increase in open interest in the past couple weeks.

Turning back to the charts, COST stock has now successfully filled its bear gap from the last earnings release in December. This also puts the shares firmly atop the 200-day moving average, an important trendline they've been battling in recent weeks. Over the past 12 months the equity has added almost 16%, and even before today traded as high as $245.16 in September.


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