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Costco (COST) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Costco (COST - Free Report) closed at $509.68, marking a -1.12% move from the previous day. This move lagged the S&P 500's daily loss of 0.89%. At the same time, the Dow lost 0.63%, and the tech-heavy Nasdaq lost 0.25%.
Prior to today's trading, shares of the warehouse club operator had gained 13.38% over the past month. This has outpaced the Retail-Wholesale sector's gain of 4.27% and the S&P 500's gain of 11.42% in that time.
Investors will be hoping for strength from Costco as it approaches its next earnings release, which is expected to be December 8, 2022. The company is expected to report EPS of $3.15, up 6.06% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $55.06 billion, up 9.32% from the prior-year quarter.
COST's full-year Zacks Consensus Estimates are calling for earnings of $14.45 per share and revenue of $245.81 billion. These results would represent year-over-year changes of +9.97% and +8.31%, respectively.
Investors might also notice recent changes to analyst estimates for Costco. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.23% lower. Costco is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Costco is holding a Forward P/E ratio of 35.67. This represents a premium compared to its industry's average Forward P/E of 23.75.
Also, we should mention that COST has a PEG ratio of 3.48. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Discount Stores industry currently had an average PEG ratio of 2.22 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 94, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Costco (COST) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Costco (COST - Free Report) closed at $509.68, marking a -1.12% move from the previous day. This move lagged the S&P 500's daily loss of 0.89%. At the same time, the Dow lost 0.63%, and the tech-heavy Nasdaq lost 0.25%.
Prior to today's trading, shares of the warehouse club operator had gained 13.38% over the past month. This has outpaced the Retail-Wholesale sector's gain of 4.27% and the S&P 500's gain of 11.42% in that time.
Investors will be hoping for strength from Costco as it approaches its next earnings release, which is expected to be December 8, 2022. The company is expected to report EPS of $3.15, up 6.06% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $55.06 billion, up 9.32% from the prior-year quarter.
COST's full-year Zacks Consensus Estimates are calling for earnings of $14.45 per share and revenue of $245.81 billion. These results would represent year-over-year changes of +9.97% and +8.31%, respectively.
Investors might also notice recent changes to analyst estimates for Costco. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.23% lower. Costco is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Costco is holding a Forward P/E ratio of 35.67. This represents a premium compared to its industry's average Forward P/E of 23.75.
Also, we should mention that COST has a PEG ratio of 3.48. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Discount Stores industry currently had an average PEG ratio of 2.22 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 94, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.