Costco (COST Stock) is the recession buster [Video]

Giles Coghlan LLB, Lth, MA Financial Source

Costco is a consumer staples stock that would likely find buyers in a recessionary environment. So, with the US in a technical recession, is the discount retailer going to see additional revenue from consumers looking to cut costs in leaner times?

Walmart is a similar discount retailer, but it issued a profit warning that concerned investors in its latest earnings report. So, with Costco not due to release its earnings until September 22, is this a good time to try and capitalise on a period of seasonal strength that Costco has?

Over the last ten years, between August 07 and September 16 Costco has risen seven times with an average gain of 2.02%. The largest return was 7.33% in 2014 and the biggest loss came in 2016. Will Costco gain on fears of a slowing US economy?

Major trade risks: Any negative news for Costco could impact this outlook as well as a broader risk negative sentiment that can impact stocks generally.

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Author

Giles Coghlan LLB, Lth, MA

Financial Source

Giles is the chief market analyst for Financial Source. His goal is to help you find simple, high-conviction fundamental trade opportunities. He has regular media presentations being featured in National and International Press.

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