Weekly Equities Forecast Costco Micron Technologies AutoZone

Costco Q1 earnings preview

Costco will release earnings on September 26 after the closing bell. Thanks to stronger revenues, the stock is expected to report a year-over-year increase in earnings and the share price trades just off its all-time high.

Wall Street is expecting EPS of 5.08 on revenues of 79.93 billion, compared to earnings of 4.86 on 78.94 billion of revenue in the same quarter in 2023.

The wholesale firm has a good track record of being resilient to challenging economic conditions and maintaining consistent performance. More recently, the firm has been ramping up digital capabilities and has delivered double-digit e-commerce sales growth in recent quarters.

Costco recently increased its membership fee by $5, marking the first increase in seven years. The fee hike sparked speculation regarding consumers' reactions; however, the move is expected to strengthen the bottom line without significantly impacting store traffic. This marked the first increase in membership in seven years and is expected to offset rising operational costs.

The Federal Reserve's jumbo rate cut means that conditions for consumers should start easing, brightening the outlook. This comes as data last week showed that consumer confidence was at its highest level in 4 months.

How to trade Costco earnings?

Costco has been steadily rising, forming a series of higher highs and higher lows; buyers will look to extend gains towards 922, the all-time high, and beyond. A fall below 870 could negate the near-term uptrend.

Micron Technology Q4 earnings preview

While many large-cap semiconductor stocks are performing well in the broader market, Micron Technology is underperforming its peers by a wide margin. The stock trades down 44% from its record high above 157 set in June ahead of Q4 and full-year earnings.

Wall Street is expecting an EPS of $1.11 on revenue of $7.64bn.

Me towards the stock and the broader semiconductor sector have taken a hit in recent weeks as investors rotate away from tech as competition heats up and amid geopolitical concerns. The PHLX semiconductor index has fallen 14% from its 2024 closing high.

While Micron’s high bandwidth memory chips are expected to see a demand tailwind from AI some have argued that the expectations are overdone. The stock has recently suffered a slew of analyst downgrades amid concerns over oversupply.

Meanwhile, several analysts have sounded more pessimistic towards Micron technology this month, with BNP Paribas downgrading shares to underperform and slashing its price target. Morgan Stanley has also lowered their price target to $100 from 140.

How to trade MU earnings?

Micro Technologies trades below its falling trendline dating back to mid-June. The 50 SMA is also crossing below its 200 SMA in a death cross signal. Sellers will look to break below 85.00, the September low to extend losses towards 79, the 2024 low. A rise above the 200 SMA at 104.70 could see buyers extend gains.

Autozone Q4 earnings preview

Autozone will release Q4 earnings on September 24 ahead of the opening bell. Wall Street expects to see EPS of $53.33 on revenue of $6.22 billion compared with EPS of $46.46 on revenue of $5.69 billion in the same quarter in 2023.

The share price is up 18% year to date, roughly in line with the broader market, ahead of earnings.

The thriving pre-owned vehicle industry has supported the demand for automobile parts. While interest rates remain high and budgets are tight, people will continue to purchase used vehicles, supporting the demand for car parts.

AutoZone's extensive store network gives it the upper hand over competitors, and the company also benefits from a healthy inventory. While management is cautious in the near term, they expect to see sales growth accelerate over the longer term.

How to trade AZO earnings

Autozone trades in an upward trend on the weekly chart, forming a series of higher highs and higher lows. Buyers will look to retake 3250 for fresh all-time highs. Sellers could look for a break below 2680 the 100 SMA to extend losses.

StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please ensure you fully understand the risks involved by reading our full risk warning.

FOREX.com is a trading name of StoneX Europe Limited, and FOREX.com/ie is a domain operated by StoneX Europe Ltd, a member of StoneX Group Inc. StoneX Europe Ltd, is a Cyprus Investment Firm (CIF) company registered to the Department of Registrar of Companies and Official Receiver with a Registration Number HE409708, and authorized and regulated by the Cyprus Securities & Exchange Commission (CySEC) under license number 400/21. StoneX Europe is a Member of the Investor Compensation Fund (ICF) and has its registered address at Nikokreontos 2, 5th Floor, 1066 Nicosia, Cyprus.

StoneX Europe Limited is registered with the German Federal Financial Supervisory Authority (BaFin). BaFin registration ID: 10160255

FOREX.com is a trademark of StoneX Europe Ltd, a member of StoneX Group Inc.

The statistical data and the awards received refer to the Global FOREX.com brand.

This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy.

Through passporting, StoneX Europe is allowed to provide its services and products on a cross-border basis to the following European Economic Area ("EEA") states: Austria, Bulgaria, Croatia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.

Additionally, StoneX Europe Ltd is allowed to provide Investment and Ancillary Services to the following non-EU jurisdiction: Switzerland.

StoneX Europe Ltd products, services and information are not intended for residents other than the ones stated above.

Tied Agent Information: KQ Markets Europe Ltd with Company No. HE427857.
Address: Athalassas 62, Mezzanine, Strovolos, Nicosia Cyprus.
Services Provided: Reception and Transmission of Orders.
Commencement Date: 06/12/2022
Website: KQ Markets - CFD Trading | KQ Markets

We may pay inducements, such as commissions or fees, to affiliates or third-party introducers for referring clients to us. This is in line with regulatory guidelines and fully disclosed where applicable.

StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation. StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.