The bulk buying bet: Why Costco is a buy ahead of its earnings report

Shares of wholesale retailer Costco have jumped more than 7 percent this year, outperforming retail stocks and the broader market in that time; the S&P retail ETF (XRT) has risen more than 4 percent in 2018.

Some strategists say the stock can continue to rise when it reports earnings Thursday afternoon. Boris Schlossberg, managing director of foreign exchange strategy at BK Asset Management, told CNBC's "Trading Nation" that he's bullish on Costco ahead of its earnings report. Here are his reasons why.