Chart of the Day: Costco Flexes in Front of Earnings
The stock has been a stalwart name in the portfolio for months, despite tough times for some other major retailers.
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One of our favorite names in the portfolio is Costco COST, which reports earnings later this week.
But retail is tough, just ask companies like Nike NKE and Starbucks SBUX, who recently replaced their CEOs to help rejuvenate their businesses. Such is not the case with Costco; this company is strong and continues to demonstrate success at its membership warehouses.
Nothing special, nothing tricky and no gimmicks -- what you see is what you get at Costco. That's at the store. We'll find out the results for the most recent quarter after the close on Thursday.
The chart is strong, the price action bullish as the candles are making higher-highs and higher-lows. The blue candles in the top pane tell us strongly bullish, according to the GoNoGo composite of indicators.
The Moving Average Convergence Divergence in the second pane may look poor, but this is simply reflecting a slowdown of the recent strong pace in August, nothing really to be worried about yet.
Money flow is strong in the bottom pain. Also, check out the series of higher highs, higher lows in the Chaikin indicator at the bottom. A very strong indication of institutional participation.
We rate Costco at two in TheStreet Pro Portfolio, stockpile on pullbacks.
The Pro Portfolio is long COST.
