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Costco (COST) Outpaces Stock Market Gains: What You Should Know
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Costco (COST - Free Report) closed at $473.27 in the latest trading session, marking a +1.96% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.14%. Meanwhile, the Dow gained 1.12%, and the Nasdaq, a tech-heavy index, lost 0.02%.
Costco will be looking to display strength as it nears its next earnings release. On that day, Costco is projected to report earnings of $3.15 per share, which would represent year-over-year growth of 6.06%. Meanwhile, our latest consensus estimate is calling for revenue of $54.98 billion, up 9.17% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.49 per share and revenue of $245.98 billion. These totals would mark changes of +10.27% and +8.38%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Costco. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.92% higher. Costco is currently a Zacks Rank #3 (Hold).
Digging into valuation, Costco currently has a Forward P/E ratio of 32.04. For comparison, its industry has an average Forward P/E of 21.09, which means Costco is trading at a premium to the group.
Also, we should mention that COST has a PEG ratio of 3.12. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Discount Stores industry currently had an average PEG ratio of 1.95 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 230, putting it in the bottom 9% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Costco (COST) Outpaces Stock Market Gains: What You Should Know
Costco (COST - Free Report) closed at $473.27 in the latest trading session, marking a +1.96% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.14%. Meanwhile, the Dow gained 1.12%, and the Nasdaq, a tech-heavy index, lost 0.02%.
Costco will be looking to display strength as it nears its next earnings release. On that day, Costco is projected to report earnings of $3.15 per share, which would represent year-over-year growth of 6.06%. Meanwhile, our latest consensus estimate is calling for revenue of $54.98 billion, up 9.17% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.49 per share and revenue of $245.98 billion. These totals would mark changes of +10.27% and +8.38%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Costco. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.92% higher. Costco is currently a Zacks Rank #3 (Hold).
Digging into valuation, Costco currently has a Forward P/E ratio of 32.04. For comparison, its industry has an average Forward P/E of 21.09, which means Costco is trading at a premium to the group.
Also, we should mention that COST has a PEG ratio of 3.12. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Discount Stores industry currently had an average PEG ratio of 1.95 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 230, putting it in the bottom 9% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.