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Costco loses 1.29%, closes at $493.07 ahead of quarterly report today

A quick look at yesterday: despite the risk-off mood, Costco was range-bound between $493 to $506.31 and settled at $493.07.

  • Daily trading volume (1.95 million shares) was slightly greater than the current multiday average of 1.87 million.
  • Costco has been on a downtrend for 8 days, losing $40, with yesterday's session adding to the run.

With investors awaiting market open on the NASDAQ in 13 hours, yesterday's session was noteworthy in that Nasdaq dropped by 1.79% to close at 11,220. S&P 500 closed at 3,790 after losing 1.71%. Costco was down yesterday while similar drops were seen throughout the Consumer Defensive sector (down 0.58%).

Costco is scheduled to announce earnings results today. The consensus Earnings Per Share estimate is 4.15 and the consensus revenue estimate is $71.64 billion.

Costco hit a significant low of $416.43 around 4 months ago, but has since recovered 19.95%. So far in 2022, it has been outperforming the Nasdaq by 27.52%. Costco has a market cap of $218.41 billion with an average daily trading volume of 1.87 million shares.

While some of Costco's indicators have improved and others have not (in comparison to recent reports), the stock's fundamentals remain slightly greater than the competition.

Costco's recent down trend has pushed its dividend yield ratio (DYR) to 0.6%, yet it remains better than its trailing twelve month average of 0.61% and well above competition. The DYR represents the percentage of a company's share price that it pays in dividends each year. For example, if a company has a 100 USD share price and it pays dividends that cost 10 USD per year, its DY would be 10%. Debt-to-equity ratio is also worth noting with a value of 0.45, which is above industry standard and shows an improvement over the preceding value of 0.5. Free cash flow with a value of 373 million, appears to be the most notable. This is slightly greater than industry standard and shows an improvement over the preceding value of -944.69 million. Return on equity is better than the industry— improving from 30% to 30%.

Fundamental analysis shows that Costco​ is retaining its 'Buy' rating as of now.

Costco could begin to recover as it approaches significant support, now $4.46 away from $488.61. Dipping below could be an indication that further losses are ahead. Despite being in the red so far in the current trading session, Costco peaked above its 5 day Simple Moving Average around $504.35 — typically an early indicator of a new bullish trend beginning to emerge. Bollinger bands shows an indication of recovery: the lower band is at $487.57, a low enough level to, generally, suggest that Costco is trading below its fair value.

Technical analysis indicates that Costco's current downtrend might soon change course and start climbing up in the short term.

Costco was not the only decliner in the consumer staples sector; Procter & Gamble went down 1.29%, closed at $137.5. Coca-Cola lost 0.83% yesterday and closed at $59.4.

On the other hand, positive performances could be seen by looking at other consumer staples stocks as Walmart traded at $134.77 after closing yesterday's trading day at $133.55 (up 0.91%).

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Is the bullish run coming to an end? Materials Select Sector SPDR Fund closed at $72 (-1.13%)

A tough session dominated by bearish sentiment left XLB 80 cents lower, while setting a $71.17 to $72.57 session range.

  • Yesterday's down move comes on the back of a 4 day uptrend, during which Materials Select Sector SPDR Fund added $4.79 to its value.

Despite being in the red so far in the current trading session, Materials Select Sector SPDR Fund peaked above its 21 day Simple Moving Average around $72.39 — typically an early indicator of a new bullish trend beginning to emerge. Materials Select Sector SPDR Fund could begin to recover as it approaches significant support, now 74 cents away from $71.24. Dipping below could be an indication that further losses are ahead.

Despite suffering losses in today's session, technical analysis is indicating that Materials Select Sector SPDR Fund will undergo a significant bounce in the immediate term.

In the meantime, negative performances are also seen in other markets, iShares MBS ETF plunges 1% yesterday and closed at $92.66. After ending yesterday's session at $48.22, Vanguard Total International Bond Index Fund ETF Shares lost 34 cents and is trading around $47.88.

At the same time, iShares Trust – iShares iBonds Dec 2021 Term Treasury ETF moves 0.04% yesterday and closed at $25.36.

Having set a significant high of $90.61 10 days ago, Materials Select Sector SPDR Fund is trading 8.14% lower.

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SBA Communications jumped $3.63 from a 1 year low and ended session at $283.12

SBA Communications dropped to $279.49, its lowest point in 1 year. It later recovered $3.63 and closed at $283.12. Daily trading volume (668,749 shares) increased, making up 130% of the 21-day average (515,552).

With around 9 hours until market open on the NASDAQ, yesterday's session saw to it that S&P 500 closed at 3,783.28 after losing 0.2%. SBA Communications closed lower yesterday, with similar drops noticed throughout the Real Estate sector (down 1.67%).

SBA Communications Corp made an initial break below its 5 day Simple Moving Average at $288.16, a possible indication of a forthcoming negative trend. SBA Communications is currently flirting with an active Fibonacci support level around $284.21. On the other hand, note that SBA Communications could begin to recover as it approaches significant support, now $4.67 away from $278.45. Dipping below could be an indication that further losses are ahead.

Several technical indicators are adding weight to the bearish momentum seen yesterday and forecasting SBA Communications to extend its recent losses.

Fundamental analysis indicates that SBA Communications​ is holding on to its 'Neutral' rating.

SBA Communications's most notable indicator is the company's price to book ratio (PB). It is standing at -5.61, a decrease from its previous value of -6.26, yet is still above its trailing twelve-month average and is surpassing the competition. The PB Ratio is a fundamental analysis indicator that compares the book value of a stock to its market value. By showing the difference between the stock’s market value and the value the company has stated in its financial books, P/B helps investors determine whether the stock is undervalued or overvalued (relative to its book value). Debt-to-equity ratio fell from its previous value of -2.79 to -2.55, yet it is above the competition average. Dividend yield ratio with a value of 0.74%, appears to be the most notable. This is above industry standard and shows an improvement over the preceding value of 0.76%. Free cash flow is also worth noting with a value of 319.15 million, which is above industry standard and shows an improvement over the preceding value of 214.58 million.

When comparing to recent reports, some of SBA Communications's indicators look better than others, and the stock's fundamentals remain slightly greater than the competition.

SBA Communications hit a significant low of $282.27 around 7 days ago, but has since recovered 3.95%. So far in 2022 it has been beating the S&P 500 by 1.93%. The company has a market cap of $30.54 billion with an average daily volume of 515,552 shares. SBA Communications's last revenue report was $652 million with an EPS of 64 cents.

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Following a flat day today, Nuance Communications closed at $56 continuing its recent flat trend

A quiet day for Nuance Communications as it remained range-bound within a $55.98 – $56 range before closing at $56.

  • Nuance Communications has been pretty quiet for the last a month, trading mostly flat and moving by only 1.16 cents on average.

With around 17 hours until market open on the NASDAQ, today's session saw to it that Nasdaq shed 0.25% and closed at 11,149. While Nuance Communications was flat, the Technology sector as a whole fell 0.125%.

When analyzing Nuance Communications's indicators, the one that stands out as most significant is the company's Return on equity (ROE) with a -7%. Note that it is now below its trailing twelve-month average of -4% and below the competition average. ROE is a measure of financial performance calculated by dividing net income by shareholders' equity. This ratio gives investors an idea of how well the company handles its shareholder's money. The price to sales ratio is doing worse than the competition— it has decreased from 12.94 reported last quarter to the current 13.36. The price to book ratio is not quite as good as the industry — it has dropped from 10.05 reported last quarter to the current 11.28.

The current state of fundamentals and indicators shows that Nuance Communications's overall fundamentals are slightly below competition.

Nuance Communications, Inc.'s upper Bollinger band is at $56, suggesting that a downward move may follow. Despite this, Nuance Communications is approaching key support, around 1 cents away from $56. Dipping below could indicate further losses are ahead while a failure to break below this level is likely to be seen positively by market bulls.

Despite the market lacking direction, technical chart analysis strongly suggests Nuance Communications is positioned for a downward move in the near term.

Meanwhile, mixed performances were seen by other technology stocks as TSM was up 2.27%. Qualcomm was up 2.06%. Oracle was up 1.48%.

Nuance Communications hit a significant low of $54.68 around 9 months ago, but has since recovered 2.4%. So far in 2022, it has been outperforming the Nasdaq by 42.87%. Nuance Communications has a market cap of $17.88 billion with an average daily volume of 15.93 million shares. Nuance Communications's last revenue report was $321.44 million with an EPS of 8 cents.

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