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Costco Earnings Preview: Watch This Price Level After the Bell

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Costco  (COST)  is set to report earnings after Wednesday's closing bell. The wholesale retailer is projected to report adjusted non-GAAP earnings of $4.17 per share according to consensus FactSet estimates. 

Bob Lang, co-portfolio manager of the Action Alerts PLUS investing club, explained why he likes Costco COST in an economic downturn and previewed the level to watch in the video above. 

FULL VIDEO TRANSCRIPT BELOW: 

Bob Lang: Now finally, ahead of tonight's earnings on Costco, let's take a look at it. It's one-- it's certainly been a name that's been solid in the portfolio for many years. The company is really-- we all know Costco is second to none as a top brand premier retailer out there, even during the economic downturn. We should see Costco continue to perform at a pretty high level. The chart is interesting here. Flirting with that 500 level once again, we talked about that as a possible area where buyers and sellers have a bit of a tug of war.

The midpoint range of the 2022 low's about 400, the high's roughly about 610 to 620. We're nearly oversold here right now since falling about 14% from the August highs. But we'll see what happens after earnings come out tonight. The stock remains a 1 rating in the AAP portfolio, and which is basically a buy at any time. We'll have a chart on Costco a little bit later on today so look for that in your email, and a preview of earnings a little bit later on today.

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