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Hi Wealth Builders!
This week, the indexes ended lower. We had a choppy week with concerns about the new covid variant spreading and the fed raising rates. These concerns have caused increased volatility in the market. As previously mentioned, we should not be worried. Times like these give us experience and make us all better traders in the long-run. "A smooth sea never made a skilled sailor." - Franklin D. Roosevelt. So anchor down everyone 💪⚓️.
Here's a look at the 5-day change for ETF's SPY (or the S&P 500), DIA (or the Dow 30), and QQQ (or the Nasdaq 100).
SPY : -2.29%, closed at $453.42
DIA : -1.8%, closed at $346.24
QQQ : -3.22%, closed at $383.13
Capital One 💳
This company recently announced that they will cut overdraft fees starting in early 2022. Overdraft fees are fees that are charged to the cardholder every time a transaction is authorized and there is not enough money in their account to cover the transaction. These fees can be up to $35 per overdraft and add up over time. For those who are struggling financially, these overdraft fees can be another obstacle in their finances. It is estimated that not charging overdraft fees will cost the company approximately $150 million in revenue. Although it may cut into their revenue, customer satisfaction and retention should be great.
Cyberquad 🏍
TSLA released cyberquads which are electric ATVs. They were sold out, restocked and sold out again. These cyberquads cost $1,900 and it looks like there is a high demand for them, especially going into the holidays. These are pretty cool, but we like to look at the entire picture of a company before investing in them. Consider revisiting our investing criteria!
Shutdown Showdown 😬
President Biden signed a short-term bill that will fund the gov't until February 18th 2022. This averted a government shutdown. We are still waiting for congress to raise the debt ceiling.
Earnings
Here's earnings for the upcoming week:
Chewy (CHWY): 2021-12-09 After Market Close (Estimated EPS: -0.04)
Broadcom Inc (AVGO): 2021-12-09 After Market Close (Estimated EPS: 6.77)
Costco Wholesale (COST): 2021-12-09 After Market Close (Estimated EPS: 2.61)
Oracle Corp (ORCL): 2021-12-09 After Market Close (Estimated EPS: 0.97)
Campbell Soup (CPB): 2021-12-08 Before Market Open (Estimated EPS: 0.81)
GameStop Corp (GME): 2021-12-08 After Market Close (Estimated EPS: -0.22)
AutoZone Inc (AZO): 2021-12-07 Before Market Open (Estimated EPS: 20.83)
H&R Block (HRB): 2021-12-06 After Market Close
Costco Wholesale (COST) 🏬
COST is a large, multinational retailer. They sell everything from meat, produce, electronics, furniture, clothes, jewelry and you guessed it, even toilet paper. COST also does e-commerce to make their products more available and accessible to all. The company primarily makes their money by selling these products to customers. COST also requires membership and therefore it is just as much a subscription business as it is a wholesaler. The more members join, the more money the company makes per year. This is one of the companies that thrived during the pandemic due to people flooding to get groceries, electronics and every day needs. COST has great discounted products which makes shopping at their stores, desirable. Let's check out their fundamentals! 🔎
Annual Revenue:
2021-08-29 : $195.93B
2020-08-30 : $166.76B
2019-09-01 : $152.7B
2018-09-02 : $141.58B
2017-09-03 : $129.03B
Earnings History:
2021-09-23 : beat (Estimate: 3.57, Actual: 3.9)
2021-05-27 : beat (Estimate: 2.34, Actual: 2.75)
2021-03-04 : miss (Estimate: 2.45, Actual: 2.14)
2020-12-10 : beat (Estimate: 2.05, Actual: 2.3)
Historical Stock Price Returns:
3-month : 15.23%
1-year : 39.92%
5-year : 247.77%
Costco Wholesale (COST) Max Chart (Yahoo Finance)
COST has had a consistent increase in their annual top-line revenue. We see that the company has a strong upwards trend. Additionally, COST has delivered 3 beats within their last 4 earnings. Although they had a hiccup with one of their earnings miss, we like to take the bigger picture into consideration. When we invest in long-term holds, we typically like to see an increasing annual top-line revenue and a consistent, strong upwards trend. Will you invest in COST? 🤔
Want to learn how to make monthly passive income, receive higher returns during bull markets and even profit off of stocks that are trending downwards?
Who Competes with COST?
A few of COST's competitors include Amazon (AMZN), Walmart (WMT) and Target Corp. (TGT).
Discord Launched!
Just as a PSA, we released our discord channel! Log in and go to the dashboard at www.calltoleap.com/courses and scroll to the bottom of the page for instructions on how to get plugged into the community.
If you're a paid subscriber, remember to check in on positions in the wheel in your dashboard or in the course pages! Until next time!
- Call to Leap Team