Costco Shares Await Quarterly Earnings This Week

Costco shares will be closely watched this week as a barometer for the US consumer.

COST – Daily Chart

COST – Daily Chart

The price of COST is trading at the $481.38 level, with support below the $465 level if the bearish trend continues.

Costco faces slowing sales growth as shoppers cut back on large discretionary items. Comparable sales in March were weaker than expected. However, Bloomberg Intelligence sees continued strength in food sales as consumers spend more selectively. Slower inflation in some categories may allow Costco to lower prices, helping to hold onto high membership-renewal rates. Analysts are still optimistic about Costco’s ability to weather headwinds due to its loyal customer base, which may allow a possible fee increase in the future.

Net income is projected at $1.46 billion, or $3.28 a share, up 7.6% from last year’s period.

Costco’s growth in recent years has come from effective price management, higher memberships, and growth in the company’s e-commerce platform, which grew in popularity during the pandemic. Total memberships, combining executive, business, and gold star cardholders, are expected to rise to 68.4 million, up 6.2% from last year.

Recent strength in US retail sales could help with a 0.4% increase in April. Economists expect consumer spending to support the economy despite the increased risks of a recession as the effects of the Federal Reserve’s interest rate hikes continue.

The retail sales report “should help reassure markets that consumer spending is not about to contract and will instead support at least modest continued economic growth,” said Andrew Hollenhorst, chief US economist at Citigroup in New York. Further consumer sentiment will be evident on Friday with the release of US Michigan consumer sentiment numbers.

Recent News
Start Trading Now !

Try our demo account for free to learn trading. When you’re ready, switch to a live account and start trading for real.

Popular posts

ATFX

The Firm has taken the decision to cease providing services to retail clients, with immediate effect. We are therefore unable to accept any applications.

Services to professional clients will not be impacted. For professional applications please contact [email protected]

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/ar/ to proceed.
ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://atfxgm.eu/en/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en-au/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/ar/ to proceed.
ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en/ to proceed.

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://www.atfx.com/en-za/ to proceed.
ATFX

Restrictions on Use

Products and Services on this website are not suitable for Hong Kong residents. Such information and materials should not be regarded as or constitute a distribution, an offer, solicitation to buy or sell any investments.

使用限制: 本網站的產品及服務不適合香港居民使用。網站內部的信息和素材不應被視為分銷,要約,買入或賣出任何投資產品。

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://atfxgm.eu/en/ to proceed.

ATFX

Restrictions on Use

AT Global Markets (UK) Limited does not offer trading services to retail clients.
If you are a professional client, please visit https://atfxconnect.com