Costco (COST) Offering Possible 25.63% Return Over the Next 13 Calendar Days

Costco's most recent trend suggests a bullish bias. One trading opportunity on Costco is a Bull Put Spread using a strike $237.50 short put and a strike $232.50 long put offers a potential 25.63% return on risk over the next 13 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $237.50 by expiration. The full premium credit of $1.02 would be kept by the premium seller. The risk of $3.98 would be incurred if the stock dropped below the $232.50 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Costco is bullish and the probability of a rise 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 69.83 level which suggests that the stock is neither overbought nor oversold at this time.

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TJX Companies Enhances Shareholder Returns, Hikes Dividend
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The Zacks Analyst Blog Highlights: America's Car-Mart, AutoZone, Darden and Costco
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3 Reasons Kroger Stock Will Stay Stuck for the Foreseeable Future
Wed, 03 Apr 2019 11:40:50 +0000
Shares of Kroger (NYSE:KR) have already started coming under fire in 2019. While the S&P 500 is up 14.5% on the year, Kroger stock is down 11%. That's not exactly a good way to start 2019 after a horrendous end to 2018.Source: Shutterstock Five years ago, KR stock seemed like a lay-up. It had a decent dividend, reasonable valuation and steady growth in a constantly in-demand industry.Everyone needs food and therefore a well-run grocery outfit was seemingly a no-brainer investment. But come to find out, that doesn't always pan out.InvestorPlace – Stock Market News, Stock Advice & Trading Tips * 8 Best Stocks to Buy for an April Rally Here are three reasons to consider avoiding Kroger stock. Secular ShiftsKroger is doing its best to keep up with the technology disruption in the grocery industry. This should help keep it defensible as other competitors also increase tech-friendly approaches to grocery stores.But Target (NYSE:TGT), Costco (NASDAQ:COST) and now Amazon (NASDAQ:AMZN) via its regular business and its Whole Foods acquisition have seemingly done a better job at moving faster. Throw in increasingly faster delivery options, meal-prep startups and a slew of other options, and KR stock is being left by the wayside.Kroger is a really tough one for me, because on paper it's a great investment. But the stock price is telling us something and as others innovate faster and as a lack of food inflation hinders its margins, it's clear that Kroger is struggling to keep pace. Valuation Isn't EnoughKroger stock may trade at 11 times earnings and yield 2.2%, but is it enough? 11 times earnings is pretty cheap, but Target has a stronger dividend and better growth with a reasonable valuation. Cheap doesn't always mean better and we don't have to look much further than the automakers to make that case.While some gravitate toward low-valuation stocks, I only use as one part of the catalyst. In fact, many other better performers trade at a higher valuation. For instance, Costco, Target, Amazon and Walmart (NYSE:WMT) all have a higher valuation than Kroger stock, and all of them have out performed KR over the past year.In fact, Kroger's 1.7% gain over the past 12 months badly lags even the second-worst performer, Walmart, and its 10.3% gain. Costco is up almost 30% in the last year. None of these stocks except for Kroger are negative year to date, while Kroger is also last on the six-month, three-year and five-year timeframes.Simply put, a low valuation is not reason enough to own Kroger. Trading Kroger Stock Click to EnlargeKroger has perhaps been one of the biggest warning signs in this whole debacle. After a late-2014 surge, KR has been nothing but trouble. And keep in mind, that's almost five-years in the making!At some point, the stock is bound to rally. It's too good of a company to be left behind forever. And unlike the low-valuation automakers, consumers need to buy food every week to stay alive. This gives some "survival" demand for a company like Kroger.That said, I'm struggling to get bullish based on these charts. Kroger stock is about $1 above its 2018 highs. If this level fails to support KR stock, then $20 is back on the table. I don't think Amazon will ruin Kroger's business model overnight, but it's not making life easy when it comes to the stock price.Amazon's announcement last month on a private-label grocery concept blasted Kroger stock below $27, a key level on the long-term charts. The 200-week moving average is rolling over and acting as resistance, while Kroger clings to the backside of prior downtrend resistance.A bounce could ensue and while a run to $29 would be a healthy return, I think that about caps the upside.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best ETFs for 2019: A Close Race at the Front * 15 Stocks to Buy Leading the Financial Charge * 7 Stocks From Around the World That Beat U.S. Stocks Compare Brokers The post 3 Reasons Kroger Stock Will Stay Stuck for the Foreseeable Future appeared first on InvestorPlace.

Can Whole Foods Expansion Help Revive Amazon’s Revenues?
Wed, 03 Apr 2019 11:31:09 +0000
Amazon Cuts Whole Foods' Prices and Adds Deals for Prime Members(Continued from Prior Part)Amazon facing sluggish revenue growth Amazon (AMZN) has been struggling due to slow revenue growth and higher investments in 2019 in hiring and capital

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