Costco Wholesale Corp
Walmart's Guidance Weighs On Retail
Walmart posted first‑quarter revenue of $177.8 billion, topping estimates, and matched expectations with adjusted earnings of 66 cents per share. But the tone shifted when Walmart issued its second‑quarter forecast.
The company projected adjusted earnings of 72 to 74 cents per share and revenue of $182.8 billion to $184.6 billion, both below Wall Street expectations. Walmart also reaffirmed its full‑year outlook, which remains under consensus.
Retail Investors React To A Cautious Outlook
Walmart's report showed strong areas of growth, including a 26% jump in U.S. e‑commerce, a 45% surge in store‑fulfilled delivery and a 36% increase in advertising revenue. International sales and Sam's Club - which is owned and operated by Walmart - also posted healthy gains. But despite those positives, the company's forward view overshadowed the beat.
Walmart's CFO noted that if elevated costs persist, the company expects somewhat higher retail price inflation later this year. That comment, paired with guidance that trails expectations, was enough to pull down sentiment across the retail sector.
Costco is due to report its own quarterly results after the market close on May 28. Analysts expect revenue of $69.38 billion and earnings per share of $4.92, according to Benzinga data.
Technicals Say Uptrend, But The Next Test Nears
Even after Thursday's pullback, Costco's chart is still showing a constructive trend structure. The stock remains above its 20‑day SMA at $1023.88, 50‑day SMA at $1006.33, 100‑day SMA at $984.30 and 200‑day SMA at $956.49. That stacked moving‑average setup, along with the golden cross that formed in March when the 50‑day SMA moved above the 200‑day SMA, keeps the intermediate bias pointed higher unless key floors start breaking.
Momentum is also cooperating. MACD is above its signal line and the histogram is positive, which is a cleaner indication that downside pressure has been easing compared to the prior downswing and that rebounds have a better chance of holding.
The market, however, is rarely sentimental about levels. The nearby resistance sits at $1,067, a zone where rebounds can stall, while $985 is the support level that matters most in the near term as it lines up with a prior pivot area and sits close to the stock's 100‑day moving‑average region.
COST Shares Are Dropping
COST Price Action: Costco shares were down 2.48% at $1,047.33 at the time of publication on Thursday, according to Benzinga Pro.
