Costco Wholesale (COST) NewsBite - Costco Expects 4Q Profit Below Estimates

Posted on Wednesday, July 23, 2008 2:47 PM

Costco Wholesale Corp. (COST) opened at 63.09. So far today, the stock has hit a low of 62.31 and a high of 66.66. COST is now trading at 63.22, down 8.78 (-13.92%). The stock hit its 52 week high of 75.23 in May and set its 52 week low of 56.09 in September. COST has been generally up for the past year. Costco Wholesale warned today its fourth quarter earnings will miss analysts' expectations hurt by higher energy costs. The company had been expected to earn $1 per share in profit. Technical indicators for the stock are bearish and steady while S&P gives COST a neutral 3 STARS (out of 5) hold rating. If you’re looking for a hedged play on this stock, consider an August bear-call credit spread above the $70 range. COST stock could rise up to 10.7% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]