It $COST to be the boss. Own where you consooom!

9 Des

Key Stats

• 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.