Costco’s stock has been placed under mounting pressure as it attempts to remain stable at the 500 level. This comes as the retail giant is set to release its quarterly earnings report on Thursday.
While the stock has been largely sold off by investors, Costco is expected to make gains once the report is released. According to projections, the big box store company is expected to announce revenue of $71.84 billion; a 15% quarter-on-quarter increase. Adjusted profit for the period is expected to be up 5% to $4.11 a share.
The company has delivered a strong financial performance as of late, with August sales of $17.55 billion; an 11% year-on-year increase from 2021. Same-store sales were also on the up with an 8.7% rise for the month.
In May, when the company released its previous earnings report. Costco’s stock gained over 6%. This was largely driven by the company’s 2% rise in adjusted profit to $2.91 as well as its 16.8% rise in revenue to $52.6 billion.
Another stock that will be monitored closely by investors this week is Darden Restaurants, the parent company of the Olive Garden, Yard House, and LongHorn Steak House. Darden Restaurants is also set to release its earnings report later this week.