Costco Stock Slammed Ahead Of Earnings; Lululemon, Ollie’s Bargain Outlet, Broadcom Also Set To Report

Sellers swarmed around Costco stock last week after the company reported a slowdown in November sales. But it’s been a different story for LULU stock, which has been attracting buyers amid expectations for another strong earnings report.

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Costco (COST) and Lululemon (LULU) are next up on the earnings docket, along with Broadcom (AVGO), which surged above its 200-day moving average Wednesday in strong volume. Semiconductor stocks were among the top gainers Wednesday after Federal Reserve Chair Jerome Powell reiterated the Fed’s intention to slow down the pace of interest rate hikes.

Costco Stock Holds Key Support Level

Costco stock crashed below its 200-day line Thursday — and extended losses Friday — after the company reported November revenue of $19.17 billion, up 5.7% year over year. But that was a slowdown from 7.7% growth in October and 10.1% in September. Investors were also spooked by a 10% decline in e-commerce sales, much worse than October’s 0.7% loss.

It was a tough week for Costco stock, which crashed below its 40-week moving average, slumping 7.3% in heavy volume. It didn’t completely fall apart, though, as Costco was able hold its 10-week moving average line, just below 494.

Costco stock fell sharply on Sept. 23 after the company reported an 8% rise in quarterly profit. Revenue increased 15% to $72.1 billion. But margins were squeezed, hurt by higher freight and labor costs. Gross margin fell to 10.2%, down from 10.9% in the year-ago period.

Costco reports earnings Thursday after the close. The Zacks consensus estimate is for adjusted profit to rise 39% to $4.12 a share, with revenue up 9% to $55.06 billion.

Earnings Watch: LULU, AVGO, OLLI

LULU stock gapped up on Sept. 2 after the company reported another quarter of strong top and bottom-line growth. Profit jumped 33% to $2.20 a share. Revenue increased 29% to $1.87 billion. Direct-to-consumer revenue rose 30%, making up 42% of total revenue.

Commenting on the results, CFO Meghan Frank said: “Despite the challenges around us in the macro-environment, guest traffic in our stores and…

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