Costco Wholesale angled higher during premarket stock action on Thursday, on pace to be in a buy range when the market opens after announcing late Wednesday its first membership fee hike since 2017. Meanwhile, WD-40 surged after topping third-quarter earnings and revenue expectations along with reiterating full-fiscal year guidance.
Discount warehouse chain Costco reported Wednesday it will raise its base membership fee in the U.S. and Canada by $5, to $65 a year, as of Sept. 1. The higher-end executive membership will rise by $10, to $130 a year.
Costco says it has some 52 million members. More than half of that total are higher-end members, according to the company. In fiscal Q3 ending in May, Costco's membership fees accounted for two-thirds of net income. The fee hikes are expected to offer a boost to Costco's bottom line.
Premarket Stocks On The Move
COST shares jumped around 2.6% during premarket action on Thursday, leading the Nasdaq 100 in early trade. On Wednesday, Costco stock declined 0.3% to 884.31, according to MarketSurge charts. COST has topped a 873.96 buy point in a three-weeks tight pattern. It remains in a buy range through 917.66.
As Costco stock advanced early Thursday so, too, did WD-40 stock, which skyrocketed more than 11% — trading high on the Russell 2000 and S&P SmallCap 600 indexes. and S&P. WDFC is below both its 50-day moving average and its 200-day moving average. The stock is looking to break a downtrend and regain its 50-day line.
WD-40 reported Q3 earnings growing 6% while revenue increased more than 9% compared to a year ago. The company also reaffirmed full-fiscal year earnings guidance of $5.00-$5.30 per share and sales totaling $570-$600 million.
Pfizer also advanced 1.6% early Thursday during premarket stock action.
On Thursday the pharmaceutical company said it will move forward with a once-daily version of its weight loss pill, danuglipron, after "encouraging" data in an ongoing early-stage trial.
Since May, Pfizer stock has been trading sideways, finding resistance at its 200-day moving average. On Wednesday, PFE gained 2.3% to 28.35.
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