Costco's most recent trend suggests a bullish bias. One trading opportunity on Costco is a Bull Put Spread using a strike $320.00 short put and a strike $310.00 long put offers a potential 31.58% return on risk over the next 35 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $320.00 by expiration. The full premium credit of $2.40 would be kept by the premium seller. The risk of $7.60 would be incurred if the stock dropped below the $310.00 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 above 80 which suggests that the stock is in overbought territory.
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LATEST NEWS for Costco
Costco Wholesale Corporation Announces Quarterly Cash Dividend
Wed, 15 Jul 2020 20:15:10 +0000
ISSAQUAH, Wash., July 15, 2020 — Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced that its Board of Directors has declared a quarterly.
Is Walmart the Tipping Point on Masks? Let’s Hope So
Wed, 15 Jul 2020 17:10:08 +0000
(Bloomberg Opinion) — Politics have been getting in the way of Americans broadly adopting a crucial preventative health measure: Wearing a mask in public to curb the spread of Covid-19. Now, though, the experts that have been urging that practice have an enormously powerful ally in Walmart Inc.The big-box retailing giant said Wednesday it would require customers at its eponymous stores and Sam’s Club chain to wear face coverings. While some 65% of its locations were already doing this to comply with local regulations, it will make it mandatory at all stores nationwide beginning July 20. Walmart does not get any credit for leading the industry on this, given that Costco Wholesale Corp., Best Buy Co. and Starbucks Corp. had earlier moved in this direction. Still, it was certainly the right thing to do because it will go a long way toward protecting its customers and the 1.5 million employees of its U.S. stores. And because of Walmart’s ubiquity and its outsize influence in American shopping, its embrace of the policy could be a hugely important step toward getting mask-wearing to be a routine behavior in all sorts of public domains. Walmart stores are often located in rural areas, which have only recently started to see a surge in Covid-19 cases and are likely to be brimming with voters who cast a ballot for President Donald Trump and have taken note of his dismissiveness of masks. In many of these places, Walmart is one of consumers’ only options for buying household essentials. If a grocery trip can normalize mask-wearing for these people, that’s a win for everyone’s health. Walmart also has plenty of establishments in states such as Florida and Texas where cases are surging and governors have been reticent to take aggressive action to stop it. In those places, the chain is effectively stepping in to curb the spread of Covid-19 where lawmakers have failed. As the country’s largest retailer, Walmart’s move also gives cover to smaller chains to require mask-wearing. I’m sure many mom-and-pop retailers have seen the viral videos of shoppers throwing tantrums at store employees over mask policies and are loathe to have such fire-breathing scenes happen in their establishments. But if mighty Walmart is making customers do this, these stores should feel emboldened to make the choice that is best for public health. In fact, within hours of Walmart’s announcement, industry trade group the National Retail Federation issued a press release urging all retailers to require customers to wear masks nationwide. The group said it hoped Walmart’s move was “a tipping point” on this issue. It remains to be seen how easily and successfully Walmart can enforce this policy. The company says it will install “health ambassadors” at each store, workers positioned near the entrance who will responsible for reminding visitors of the mask requirement. That may be a delicate task, especially at first. But, with any luck, Walmart’s move will create an industrywide norm that will soon make the act of wearing a mask mundane and apolitical. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Sarah Halzack is a Bloomberg Opinion columnist covering the consumer and retail industries. She was previously a national retail reporter for the Washington Post.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Better Buy: Costco vs. Shake Shack
Wed, 15 Jul 2020 12:30:00 +0000
Warehouse clubs and juicy burgers have little in common, and this became painfully clear when the pandemic hit home. Costco's (NASDAQ: COST) retail outlets remained popular during the early stages of the COVID-19 outbreak. Shake Shack (NYSE: SHAK) went the other way with sales plummeting during the first few weeks of the normal.
Forget Target: Costco Is the Better Recession-Resistant Stock
Wed, 15 Jul 2020 11:30:00 +0000
Research group The Conference Board projects U.S. GDP will fall 7% in 2020, with just a 1% increase in a “recovery” year of 2021. For consumer spending, The Conference Board believes things will be better, but only slightly, with a 6.7% decline in 2020 and a 1.9% recovery in 2021. Two such dividend-paying retailers are Target (NYSE: TGT) and Costco (NASDAQ: COST).
3 Warren Buffett Stocks Worth Buying Now
Tue, 14 Jul 2020 15:36:00 +0000
When Warren Buffett invests in a company, it pays to find out why. The legendary value investor bought his first stock at age 11 and now, 78 years later, he is the fourth-richest man in the world and the head of the $430 billion holding company Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). Berkshire's portfolio is publicly available through SEC filings, giving regular investors a glimpse into the mind of the oracle of Omaha.
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