Jim Cramer: Costco Stock Will Be Down After Earnings

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Costco is set to report earnings.

The company has been a household name, both during the coronavirus pandemic and in everyday life. 

So, with everyone cooped up in their homes for the past two months, what should we make of Costco, which was labeled as an essential business right as the shutdown started?

Last week, as the retailer geared up for its earnings report, TheStreet's Bret Kenwell wrote about what we need to see from Costco after its report. 

"Should Costco do what the other four retailers above did — that is, trade within 1.5% of its all-time high within 24 hours of earnings — it will put shares at or above $320.40 by May 28th, the day it reports earnings," wrote Kenwell. "To get there, shares will have to hurdle the $312.50 area, which has been a layer of resistance for Costco stock this year. It’s worth pointing out that the 78.6% retracement comes into play at $312.99. Interestingly enough, shares have struggled with $320. So a move up to this level ahead of or after earnings would not be surprising."

Jim Cramer says that the first trade after Costco earnings hit the wire will be down.

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Cramer and the team are weighing in on what members need to know about the coronavirus pandemic's impact on the market. Watch the full May show over on Action Alerts PLUS.

Salesforce is also reporting after the bell. Don't miss what Cramer had to say on StreetLightning. 

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