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The Week Ahead: Wide-Moat Costco and Adobe Report

Narrow-moat Lululemon reports earnings this week, and the Fed's rate decision will be released.

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Few notable earnings releases are slated for next week. Two wide-moat companies are set to announce Thursday: Costco Wholesale (COST) and Adobe (ADBE)

Our analysts believe that Costco’s competitive advantages are durable even with intensifying competition in the retail space. Through the financial crisis, digitization of retail, and competitors like Amazon.com, Costco’s membership renewal rates in the United States and Canada have remained at roughly 90%. 

Adobe dominates the digital space’s creative segment. The firm posted strong third-quarter results, continuing to attract new users.

Narrow-moat Lululemon Athletica (LULU) will report Wednesday. Our analysts assigned its narrow moat rating based on Lululemon’s intangible brand asset; the company has a competitive edge in key categories such as yoga apparel, thanks to the styling and quality of its products.

The Fed will announce its rate decision Wednesday; this time around, it seems like there will be a pause to cutting rates further. The Treasury budget will be announced on Wednesday as well. 

Economic data including import and export prices and the core consumer and producer price index are set for Friday. Economic data including import and export prices and the core consumer and producer price index are set for Friday.

Jess Liu does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.