Costco(US:COST) Forbes·2025-12-10 16:15Company Overview - Costco Wholesale is set to announce its earnings on December 11, 2025, with a current market capitalization of $394 billion and revenue of $275 billion over the past twelve months [2] - The company reported operational profits of $10 billion and net income of $8.1 billion [2] Historical Performance - Over the past five years, Costco has recorded 19 earnings data points, resulting in 12 positive and 7 negative one-day (1D) returns, indicating a positive return rate of approximately 63% [8] - The positive return rate drops to 55% when analyzing data from the last three years [8] - The median of the 12 positive returns is 2.4%, while the median of the 7 negative returns is -2.4% [8] Earnings Reaction Strategy - A strategy to capitalize on earnings announcements involves understanding historical odds and positioning ahead of the announcement or observing immediate and medium-term returns post-earnings [3] - The correlation between short-term (1D) and medium-term (5D) returns can guide trading decisions, particularly if a strong correlation is identified [5] Peer Comparison - The performance of peers can influence Costco's post-earnings stock reactions, with historical data showing the relationship between Costco's stock performance and that of peers reporting earnings prior to Costco [6] - For smoother investment options, the Trefis High Quality (HQ) Portfolio, which includes 30 stocks, has consistently outperformed benchmarks like the S&P 500, S&P mid-cap, and Russell 2000 indices [7]