Costco's Earnings On Deck: Will The King Of Bulk Deliver A Big Market Surprise?

Costco Wholesale Corp COST is rolling up to earnings season with a full cart and a few mixed signals – and Wall Street is watching closely.

The wholesale giant reports fiscal third quarter results after the bell Thursday, with analysts expecting earnings per share of $4.24 on revenue of $63.19 billion. It's a moment of truth for a stock that's gained 25% over the past year but has wobbled slightly in recent weeks, slipping nearly 2% in the past month.

Read Also: Costco Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

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Technically, COST stock is walking a tightrope. The stock, at $1009.74, trades below its eight-day simple moving average (SMA) (bearish signal) and its 20-day SMA (bearish). However, it is comfortably higher than both the 50 and 200-day SMAs, which is a bullish indicator.

MACD (moving average convergence/divergence) reading is humming at 9.46 and RSI (relative strength index) sits in neutral territory at 52.56. Translation: the trend is moderately bullish, but there's noticeable selling pressure heading into the print.

Still, sentiment is strong. COST stock has a consensus "Buy" rating from analysts, with a price target of $1,034.68, and Telsey Advisory Group is even more bullish with a recent average target of $1,100, suggesting upside of nearly 9%.

And then there's this gem from JPMorgan analyst Christopher Horvers, who captures the broader sentiment: "COST the King could still see a better-than-expected positive reaction."

Costco's positioning as a retail powerhouse with growth stock characteristics—much like its peer Walmart Inc WMT—is starting to resonate more with NASDAQ-style momentum. That gives the stock some tailwind, even amid near-term hesitation.

With investors bracing for market volatility and earnings season in full swing, Costco is stepping into the spotlight. Will the king of bulk buying boost investor returns—or get hit with a price check?

We'll know after hours.

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• Costco Wholesale Q3 Earnings Preview: Will Company Discuss Price Increases After Prior Trump Team Backlash?

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