If you're looking for stocks that are setting up in a base ahead of earnings, here's one that fits the bill: IBD 50 member Costco Wholesale. It's expected to release its latest numbers around Mar. 3 and is currently about 8% under a 571.59 buy point. The pattern is a second-stage consolidation.
Keep in mind that buying a stock just before it reports is risky, since disappointing numbers could send it sharply lower. You can reduce your exposure by waiting to see how the company reports and how the market reacts.
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Costco's Earnings Growing Steadily
The members-only wholesaler posted 13% earnings-per-share growth last quarter. Revenue increased 17%.
Analysts are looking for earnings growth of 7% for the quarter, and 8% growth for the full year. Earnings estimates for the full year were recently revised upward.
Costco stock has a 91 Composite Rating and earns the No. 1 rank among its peers in the Retail-Major Discount Chains industry group. Target and Wal-Mart are also among the group's highest-rated stocks.
Note: Dates for earnings reports are subject to change. Check the company's website for any updates.
