Shooting the Gap!

Good Morning WakeUp Watchlisters! Happy Friday! In some sick twist of fate it is both national cereal day and national flapjack day, so pick a side and celebrate your breakfast this morning as we get into the premarket review.

The indexes are flat across the board, as long as the Senate passes their spending package we should be in for a low key end of the week. Cheers to that!

Docusign Inc. (Nasdaq: DOCU)

Docusign Inc. is up 9.65% in the premarket after posting a terrific earnings report yesterday after the close. Total revenue is up 10% year over year and the free cash flow has more than doubled to $265 million this year. Analysts are also pleased to see that revenue from subscriptions is up 10% as well signifying some staying power for the remote document authorization program.

Gap Inc.(NYSE: GPS)

Gap Inc. is up 6.62% in the premarket after posting great earnings led by its Old Navy and Gap divisions. Unlike our previous two apparel company appearances on the watchlist this week Gap is overperforming, more than doubling analysts expectations and reporting $49 cents EPS. It appears, for now at least, that discount apparel is in a healthier spot than the luxury or high quality side of the sector.

These earnings moves on apparel stocks are dramatic, and that makes them the perfect candidates for our overnight trading strategy in The War Room. In and out in less than 24 hours without day trading, and we win if the stock moves regardless of the direction.

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Costco Wholesale Corp. (Nasdaq: COST)

Costco Wholesale Corp. is down 4.66% in the premarket. Despite increases in sales, earnings, and revenue, analysts were not impressed with the earnings report released yesterday by the wholesale retail giant. Healthy increases in the sale of major appliances as well as gold and silver bars were highlights of the past quarter, but overall the investing sentiment puts Costco at fair value given the report.

Those are the biggest stock movers for today.

Happy trading!

The Wake-Up Watchlist Research Team

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