Back to top

Image: Bigstock

Bartosiak: Trading Costco's (COST) Earnings with Options

Read MoreHide Full Article

On Thursday, October 5th, Costco (COST - Free Report) will release its third quarter earnings results after the bell. The company is a Zacks Rank 2 (Buy), and have a Value, Growth, and Momentum score of A.

Dave will look at Costco’s past earnings, take a look at what is currently going on with the company, and give us his thoughts on their upcoming earnings announcement.

Furthermore, Dave will uncover some potential options trades for investors looking to make a play on Costco ahead of earnings.

Costco in Focus

Costco Wholesale Corp. operates membership warehouses based on the concept that offering members very low prices on a limited selection of nationally branded and selected private label products in a wide range of merchandise categories will produce high sales volumes and rapid inventory turnover. This rapid inventory turnover enables Costco to operate profitably at significantly lower gross margins than traditional wholesalers, discount retailers and supermarkets.

Costco is expected to report earnings at $2.02 per share according to the Zacks Consensus Estimate. Last quarter they beat earnings expectations by 6.87%. They reported earnings at $1.40per share, beating their estimate of $1.31. They have an average earnings surprise of 6.35% over the last 4 quarters.

Costco Wholesale Corporation Price, Consensus and EPS Surprise

Costco Wholesale Corporation Price, Consensus and EPS Surprise | Costco Wholesale Corporation Quote

Bottom Line

How should investors play Costco ahead of their earnings report? For insights on the best options trades, then tune in at 1:00pm CST today to see David’s thoughts.

Can Hackers Put Money INTO Your Portfolio?

Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.

Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.

Download the new report now>>

See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Costco Wholesale Corporation (COST) - free report >>