Costco Wholesale (NASDAQ:COST) shares traded on -1.21% below secure line and closed at $209.05. The stock exchanged hands 2.53 Million shares versus average trading capacity of 2.59 Million shares. It has a market cap of $92.63 Billion.
Wall Street analysts are predicting that Costco Wholesale (NASDAQ:COST) will report earnings per share of $1.69 in their quarterly report. For the current quarter Costco Wholesale (NASDAQ:COST) has high EPS estimates of $1.78 in contradiction of low EPS estimates of $1.53. However a year ago for the same quarter the company has reported $1.59 EPS. Average estimation for the current quarter has been provided by 24 analysts.
Investors as well as the sell-side will be paying close attention to how the actual numbers compare with the estimates. Earnings surprises can have a huge impact on a company’s stock price. Several studies suggest that positive earnings surprises not only lead to an immediate hike in a stock’s price, but also to a gradual increase over time. Hence, it’s not surprising that some companies are known for routinely beating earning projections. A negative earnings surprise will usually result in a decline in share price.
A large surprise factor in either direction typically can lead to a significant swing in the stock price in the hours and days after the report. Previously Costco Wholesale (NASDAQ:COST) reported $1.61 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.62 by $-0.01 with surprise factor of -0.6%.
Costco Wholesale (NASDAQ:COST) has average revenue estimates of $35.72 Billion, compared to low analyst estimates of $35.06 Billion and high estimates of $36.16 Billion for the current quarter. A total number of 19 analysts provided estimations over revenues. For the current year the company’s revenue estimates are $153.05 Billion compared to low analyst estimates of $150 Billion and high estimates of $157.58 Billion according to the prediction of 24 analysts.
Taking a broader look at the analyst consensus, according to 23 analysts Costco Wholesale (NASDAQ:COST)’s price will reach at $236.83 during 52 weeks. Its minimum price target estimates has been figured out at $200 while the maximum price target forecast is established at $260.
On the other hand Costco Wholesale (NASDAQ:COST) has Relative Strength Index (RSI 14) of 43.57 along with Average True Range (ATR 14) of 3.82. Where the relative strength index (RSI) is a technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine excess buying & selling conditions of an asset, it is one of the most popular technical indicators, computed on the basis of the speed and direction of a stock’s price movement. The RSI value will always move between 0 and 100; the value will be 0 if the stock falls on all 14 days, and 100, if the price moves up on all the days) as suggested by J Welles Wilder. In terms of market analysis and trading signals, RSI moving above the horizontal 30 reference level is viewed as a bullish indicator, while the RSI moving below the horizontal 70 reference level is seen to be a bearish indicator. The level of 50 represents neutral market momentum and corresponds with the center line in other oscillators such as MACD (Moving Average Convergence/Divergence). The average true range (ATR) is a measure of volatility introduced by Welles Wilder.
Consequently Costco Wholesale (NASDAQ:COST)’s weekly and monthly volatility is 1.67%, 1.57% respectively.