Costco (COST) Offering Possible 40.85% Return Over the Next 9 Calendar Days

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Costco’s most recent trend suggests a bullish bias. One trading opportunity on Costco is a Bull Put Spread using a strike $187.50 short put and a strike $182.50 long put offers a potential 40.85% return on risk over the next 9 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $187.50 by expiration. The full premium credit of $1.45 would be kept by the premium seller. The risk of $3.55 would be incurred if the stock dropped below the $182.50 long put strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Costco is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Costco is bullish.

The RSI indicator is at 66.7 level which suggests that the stock is neither overbought nor oversold at this time.

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LATEST NEWS for Costco

Costco: Another Quarter of Strong Earnings?
Mon, 05 Mar 2018 17:58:00 +0000
While many retailers struggled in 2017, Costco easily outperformed, and although the shares got off to a bit of a rocky start this year, analysts are bullish about its prospects. Guggenheim’s John Heinbockel remains Neutral on the stock Monday, but writes that the warehouse club is in an “enviable position” among retailers, as it notches above-average comparable sales, thanks to strong brand engagement. This, along with lower corporate taxes, should give it plenty of funds to keep investing in its business from a position of strength.

Solid Comps, Initiatives to Aid Costco’s (COST) Q2 Earnings
Mon, 05 Mar 2018 15:13:03 +0000
Investors are keeping their fingers crossed and hoping for a positive earnings surprise from Costco (COST) in the quarter to be reported.

What Analysts Recommend for Costco before Fiscal 2Q18 Earnings
Mon, 05 Mar 2018 14:02:59 +0000
Of the analysts covering Costco (COST), most of them are keeping a positive outlook on the stock. Costco’s financials are likely to benefit from increased store traffic and the rise in its average transaction size. Currency fluctuations and inflation in gasoline prices are expected to work in favor of Costco by further supporting its sales profitability growth rate.

How Target’s Valuation Stacks Up with Peers
Mon, 05 Mar 2018 14:00:53 +0000
What to Expect from Target’s 4Q17 Earnings

Why Earnings Season Could Be Great for Costco (COST)
Mon, 05 Mar 2018 13:56:01 +0000
Costco (COST) is seeing favorable earnings estimate revision activity and has a positive Zacks Earnings ESP heading into earnings season.

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