Costco (COST) Offering Possible 41.24% Return Over the Next 15 Calendar Days

Costco's most recent trend suggests a bullish bias. One trading opportunity on Costco is a Bull Put Spread using a strike $215.00 short put and a strike $210.00 long put offers a potential 41.24% return on risk over the next 15 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $215.00 by expiration. The full premium credit of $1.46 would be kept by the premium seller. The risk of $3.54 would be incurred if the stock dropped below the $210.00 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 65.38 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

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LATEST NEWS for Costco

Costco Emerges as Consumer Favorite While Amazon Love Wanes
Tue, 26 Feb 2019 21:24:38 +0000
The warehouse shopping club scored 83 on the annual American Customer Satisfaction Index, edging out Amazon’s score of 82. Amazon had topped the category since 2010, but its score slipped four points compared with a year ago. This is the first time the survey included Costco in its internet retail category.

Costco vs. Sam's Club: What's the Difference?
Tue, 26 Feb 2019 20:24:05 +0000
Other retailers must find different ways to drive consumers to their businesses. We see those that focus on healthy foods, locally grown or made products, specialty niche stores, those that only carry high-end brands, those that only carry low-end brands, and in the case of Costco Wholesale Corp. (COST) and Sam’s Club, those that only sell in bulk. Costco is considered the original bulk retailer. Costco builds a warehouse that is very minimal.

Reliability and Customer Loyalty Make Costco Stock a Great Retail Bet
Tue, 26 Feb 2019 17:09:33 +0000
The retail sector has been a tricky place to put your money over the past few years, but there are some solid picks that have been able to consistently deliver even in the face of a difficult industry environment. Warehouse retailer Costco (NASDAQ:COST) is one such investment whose solid business model has kept it above the fray as its peers battled against online competitors like Amazon (NASDAQ:AMZN). Costco stock has been a reliable bet throughout.Source: Mike Mozart via Flickr (Modified)The most important thing to understand about Costco stock is that selling merchandise in bulk isn't how COST makes its money. In 2018, the company reported $138 billion worth of goods.The cost of those products plus the firm's operating expenses totaled around $137 billion- leaving a profit of just $1 billion. However, the firm's net income was over $3 billion.InvestorPlace – Stock Market News, Stock Advice & Trading Tips * 10 Blue-Chip Stocks to Lead the Market That extra cash came from Costco's yearly membership fees. In order to take advantage of Costco's bulk goods and cheap fuel, customers have to pay a yearly membership fee, and that's actually where the firm generates the majority of its income. Why That's Worth Investing InThe Costco business model makes COST stock a worthwhile addition to your portfolio for a few reasons. First, the membership-based model has helped the company avoid "the Amazon effect." Costco's membership program breeds loyalty and that loyalty translates into to renewals; the firm boasts a more than 90% customer retention rate.That 90% retention rate is made possible by the firm's business model. By selling its goods at-cost and offering fuel at a loss, Costco is building trust with its clientele. People expect Costco goods to be the lowest available price and that keeps them coming back. Plus, Costco has been able to create an in-store experience that people are willing to pay for. First, there's the "treasure-hunt" feel to the stores. While some items are always re-stocked, others like furniture and office supplies are one-time bargains. There's also the company's infamous sample stations and a variety of cheap meals at the Costco cafe. People like going to Costco and that's another reason they're willing to pay for a yearly membership. Lucrative Way to Make MoneySo, while Costco is technically a retailer the firm isn't battling against the same issues as many of its peers. Instead the firm is benefitting from it's high-margin membership fees. It doesn't cost much to sign members up and collect their dues each year, so the majority of those fees are going straight to Costco's bottom line. Wealthy CustomersAnother thing Costco stock has going for itself is that its customer base is primarily affluent. The average Costco customer has an annual income of around $100,000, which has helped to insulate COST from market volatility in the past. The company's value proposition is enough to keep its customers coming back even when the economy is down. The fact that the firm sells everyday necessities at a low price means people are unlikely to cut their membership when they tighten their pursestrings. December WoesCostco stock is still recovering from a 12% drop back in December when the firm released its quarterly results. Investors were disappointed to see margins decline during the fiscal first quarter of 2019, but it's worth noting that Costco has been investing heavily in its online platform in order to keep-up with the rising demand for online shopping options.That kind of investment is hurting the company's overall margins, but it's paying off. Online sales were up 32.2 percent from the previous year. Plus, the key metrics that Costco's overall business model relies on were strong.Store traffic in the first quarter was up 4.9% worldwide and 5.2% in the US. membership revenue was up 10% from the previous year due to new sign ups as well as higher membership fees. The firm's renewal rate in the US came in at 90.5% and 88% across the rest of the world. Bottom Line on Costco StockThe bottom line here is that Costco's unique business model and wealthy customer base has insulated the store from problems that many of its peers are experiencing. The retail sector has enjoyed strong traffic in recent quarters, but an economic downturn could turn that around.I'd argue that Costco is largely immune to that kind of risk, making it a solid play in the retail space. Plus, the worries about Costco's margins back in December were overdone considering the strength in other areas- I'd expect to see the firm's share price rise over the next few weeks as its earnings report date approaches. As of this writing, Laura Hoy was long AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Strong Buy Stocks Top Investors Are Buying Now * 7 Cheap Stocks That Make the Grade * 5 Clinical-Stage Biotech Stocks to Buy Compare Brokers The post Reliability and Customer Loyalty Make Costco Stock a Great Retail Bet appeared first on InvestorPlace.

Aurora Cannabis Should Have Bought This Hemp Company
Tue, 26 Feb 2019 16:56:34 +0000
Aurora Cannabis (NYSE:ACB) and ACB stock just took a body blow. Source: Shutterstock Tilray (NASDAQ:TLRY) announced Feb. 25 that it bought Manitoba Harvest, the world's largest hemp foods manufacturer, for $317 million. Canopy Growth (NYSE:CGC) plans to spend as much as $500 million on the U.S. Hemp industry. What's Aurora up to?InvestorPlace – Stock Market News, Stock Advice & Trading TipsAlthough it acquired Agropro UAB last September, Europe's largest organic hemp grower, a company that can process more than a million kilograms of organic hemp, it wasn't a huge deal financially. Aurora paid CAD$12.6 million, including debt, a pittance compared to the investments of both Tilray and Canopy Growth. It can and ought to do better. What Is Manitoba Harvest?Based in Winnipeg, Manitoba, the hemp food manufacturer has its products on the shelves of Walmart (NYSE:WMT), Costco (NASDAQ:COST) and Whole Foods in both the U.S. and Canada. Consumers might be familiar with Hemp Hearts, the company's line of seeds often used for cereal and yogurt. * 10 Blue-Chip Stocks to Lead the Market This summer, Manitoba Harvest plans to launch a line of branded tinctures, sprays and soft-gels containing CBDs in the states where the sale of CBD products is legal. Manitoba Harvest's products are on 16,000 shelves in the U.S. and Canada. Tilray gains access to the hemp-derived CBD market in the U.S., which is estimated to hit $22 billion by 2022. The tricky part is jumping through all of the various state-level rules regarding hemp-derived CBD and CBD-infused foods. It will, however, get sorted, and when it does, Manitoba Harvest will be a leading U.S. supplier of hemp-derived CBD-infused foods. A Focus on MedicalRight now, Aurora Cannabis CEO Terry Booth isn't ready to let go of its stronghold in the medical marijuana market because it's too darn profitable. Booth rightfully believes that it makes little sense to go after other markets when it can make more selling into the higher-margin medical market. "We're not that ready to give them more than what our contract requires when we are getting double in other locations," Booth told analysts on the company's second-quarter earnings call. "It is not something that we have top of the priority list in providing cannabis for a lesser price if we don't have to."That's business 101. I get it. In the second quarter, Tilray had CAD$47.6 million in net revenue, 55% from medical cannabis and 45% from recreational cannabis. It's not avoiding selling recreational pot; it's just not rushing out of the medical side of its business to meet the shortages of recreational pot in Canada. Nor should it. "If I lose sleep over anything, I lose sleep over our ability to supply this global cannabis market. It is coming at us very fast," Booth said. "I see this world expansion in the cannabis space not even close to being fed properly. It's at least five years before we have an oversupply situation for companies that can export under EU GMP compliant facilities."So, if you own ACB stock, I'd look at Booth's concerns as opportunities dressed up as hard work. To meet the global demand for cannabis will be financially rewarding for all. Missed a Big ChanceI believe that Tilray's purchase of Manitoba Harvest was brilliant. While the dried leaf business is going to be big, CBD-infused food and beverages are going to be bigger. That's why I recently recommended New Age Beverages (NASDAQ:NBEV) as a speculative buy. I have no way of knowing how widely its current owner, Compass Diversified Holdings (NYSE:CODI), shopped Manitoba Harvest, but if it crossed Terry Booth's desk, he should have taken a more serious look.As time passes, owners of ACB stock will learn if Aurora Cannabis is on the path to riches or rags. Missing out on Manitoba Harvest might not hurt its future, but it sure would have helped it.If you own Tilray stock, you ought to be smiling at the company's latest acquisition. It's a winner.As of this writing, Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Strong Buy Stocks Top Investors Are Buying Now * 7 Cheap Stocks That Make the Grade * 5 Clinical-Stage Biotech Stocks to Buy Compare Brokers The post Aurora Cannabis Should Have Bought This Hemp Company appeared first on InvestorPlace.

Check Ross Stores' (ROST) Probability to Beat Earnings in Q4
Tue, 26 Feb 2019 14:17:02 +0000
Ross Stores (ROST) gains from its better price management, merchandise initiatives, cost containment and store-expansion plans. However, higher freight costs are worrisome.

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