COSTCO TOPS PROFIT EXPECTATIONS, STOCK ABOVE ALL MAs
Costco Wholesale’s stock is currently trading at 225.68-higher by 4.10% as compared to the previous closing price. In the pre-market trading session, the stock was trading higher by 4.43%. The stock has pared some of its earlier gains after the opening bell.
The company on Thursday reported quarterly profit that was above the market expectation as the warehouse club operator’s margins were lifted by a drop in gas prices and a shift to lower-cost sourcing. Costco also said pricing pressure on its groceries business had decreased, adding to the upbeat sentiment.
The company reported quarterly profit of $2.01 per share, beating the median forecast of $1.69 per share. Revenue, however, came in below the market expectation. The company saw a 6.7% jump in overall comparable-store sales and also saw a 25.5 rise in comparable online sales.
Costco raised its starting wages to $15 and $15.50 per hour, from $14 and $14.50 per hour in the U.S. and Canada amid a tight labor market.
On the technical front, the RSI is currently at 67.9% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is above the upper band of the Bollinger Bands and is heading upwards.
TRADE SUGGESTION- LIMIT BUY AT 225.50 TAKE PROFIT AT 227.50 STOP LOSS AT 224.50