Costco (COST) Offering Possible 7.41% Return Over the Next 30 Calendar Days

Costco's most recent trend suggests a bullish bias. One trading opportunity on Costco is a Bull Put Spread using a strike $195.00 short put and a strike $185.00 long put offers a potential 7.41% return on risk over the next 30 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $195.00 by expiration. The full premium credit of $0.69 would be kept by the premium seller. The risk of $9.31 would be incurred if the stock dropped below the $185.00 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 at 70.39 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


LATEST NEWS for Costco

Top Consumer Staples Stocks for 2018
Mon, 14 Jan 2019 17:31:02 +0000
Consumer staples stocks faced several headwinds this year, from increased commodity costs to a hiking of interest rates by the Fed. The end result was that the sector – which is a refuge during times of volatility – is down from the start of this year.

Kirkland does big business for Costco
Mon, 14 Jan 2019 14:18:38 +0000
Costco’s Kirkland Signature products brought in more than $39 billion in 2018, making up almost a third of all Costco sales.

What’s the Expected Upside in Target Stock?
Mon, 14 Jan 2019 14:01:20 +0000
Target Shone during the Holidays—Why Didn't Its Stock?

(Continued from Prior Part)

## Ratings and target price

The majority of Wall Street analysts maintain neutral outlooks on Target (TGT) stock. Analysts expect Target to benefit from increased consumer spending. Its comps are likely to sustain momentum in the coming quarters driven by growth in its traffic.

Target’s investments in price, expanded digital offerings, store remodelings, the opening of small-format stores, and exclusive brand launches are expected to support its top line growth. However, pressure on its margins is expected to hurt its stock.

Among the 26 analysts providing ratings on Target stock, 16 have given it “holds,” nine have given it “buys,” and one has given it a “sell.” Analysts have a consensus target price of $82.12 per share on TGT stock, which implies a potential upside of 20.3% based on its closing price of $68.29 on January 10.

## What Wall Street recommends for TGT’s peers

The majority of analysts have favorable outlooks on Costco (COST) stock. Costco continues to generate strong sales and earnings growth and outperform its peers. Among the 28 analysts following COST, 17 have given it “buy” ratings, and 11 have given it “holds.” Analysts maintain a consensus target price of $237.70 on the stock, which indicates a potential upside of 12.8%.

Meanwhile, of the analysts covering Walmart (WMT) stock, 18 have given it “holds,” and 14 have given it “buys.” Analysts have a consensus target price of $106.81 on WMT, which indicates a potential upside of 12.5% based on its closing price of $94.96 on January 10.

Browse this series on Market Realist:

* Part 1 – Target Shone during the Holidays—Why Didn’t Its Stock?
* Part 2 – What’s in the Offing for Target Stock?
* Part 3 – Why Target’s Digital Sales Could Grow at a Healthy Rate

Analysts ID Retail Winners, Losers From Holiday Sales Numbers
Sun, 13 Jan 2019 21:04:37 +0000
Retail stocks are off to a hot start to 2019 despite mixed holiday sales numbers. Several Wall Street analysts weighed in on retail sales numbers from top stocks. Here’s a sampling of what they said.  …

Costco (COST) Down 7.1% Since Last Earnings Report: Can It Rebound?
Sat, 12 Jan 2019 14:30:02 +0000
Costco (COST) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

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