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Costco (COST) Outpaces Stock Market Gains: What You Should Know
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Costco (COST - Free Report) closed the most recent trading day at $506.45, moving +1.29% from the previous trading session. This change outpaced the S&P 500's 1.15% gain on the day. Meanwhile, the Dow gained 1.11%, and the Nasdaq, a tech-heavy index, added 11.35%.
Heading into today, shares of the warehouse club operator had gained 3.04% over the past month, outpacing the Retail-Wholesale sector's gain of 1.99% and lagging the S&P 500's gain of 4.49% in that time.
Investors will be hoping for strength from Costco as it approaches its next earnings release, which is expected to be March 2, 2023. The company is expected to report EPS of $3.20, up 9.59% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $55.61 billion, up 7.15% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.25 per share and revenue of $243.3 billion. These totals would mark changes of +8.45% and +7.2%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Costco. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.17% lower. Costco is currently a Zacks Rank #3 (Hold).
Investors should also note Costco's current valuation metrics, including its Forward P/E ratio of 35.08. Its industry sports an average Forward P/E of 22.69, so we one might conclude that Costco is trading at a premium comparatively.
We can also see that COST currently has a PEG ratio of 3.67. 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. COST's industry had an average PEG ratio of 1.99 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 190, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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 the most recent trading day at $506.45, moving +1.29% from the previous trading session. This change outpaced the S&P 500's 1.15% gain on the day. Meanwhile, the Dow gained 1.11%, and the Nasdaq, a tech-heavy index, added 11.35%.
Heading into today, shares of the warehouse club operator had gained 3.04% over the past month, outpacing the Retail-Wholesale sector's gain of 1.99% and lagging the S&P 500's gain of 4.49% in that time.
Investors will be hoping for strength from Costco as it approaches its next earnings release, which is expected to be March 2, 2023. The company is expected to report EPS of $3.20, up 9.59% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $55.61 billion, up 7.15% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.25 per share and revenue of $243.3 billion. These totals would mark changes of +8.45% and +7.2%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Costco. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.17% lower. Costco is currently a Zacks Rank #3 (Hold).
Investors should also note Costco's current valuation metrics, including its Forward P/E ratio of 35.08. Its industry sports an average Forward P/E of 22.69, so we one might conclude that Costco is trading at a premium comparatively.
We can also see that COST currently has a PEG ratio of 3.67. 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. COST's industry had an average PEG ratio of 1.99 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 190, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.