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Check out Costco's (COST) Probability to Beat this Earnings
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Costco Wholesale Corporation (COST - Free Report) is slated to report third-quarter fiscal 2017 results on May 25, 2017. In the preceding two quarters, the company underperformed the Zacks Consensus Estimate by 13.3% and 1.7%. Let’s see how things are shaping up prior to this announcement.
Investors are keeping their fingers crossed and hoping Costco to post positive earnings surprise in the quarter to be reported. The current Zacks Consensus Estimate for the quarter under review is $1.31, reflecting a year-over-year increase of over 5%. We observe that the Zacks Consensus Estimate has improved by a penny in the past 30 days. Analysts polled by Zacks expect revenues of $28,654 million, up 7% from the year-ago quarter.
Model Predicts Lower Probability
Our proven model does not conclusively show that Costco is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Costco has an Earnings ESP of -0.76% as the Most Accurate estimate is at $1.30, while the Zacks Consensus Estimate is pegged higher at $1.31. The company carries a Zacks Rank #3, which increases the predictive power. However, we need to have a positive ESP to be confident about an earnings surprise.
Costco Wholesale Corporation Price, Consensus and EPS Surprise
Costco continues to be one of the dominant retail wholesalers based on its scale and quality of merchandise offered. A differentiated product range enables the company to ensure an upscale shopping experience for its members, resulting in market share gains. Moreover, Costco continues to maintain a healthy membership renewal rate. Further, it is gradually expanding eCommerce capabilities in the U.S., Canada, U.K., Mexico, Taiwan and Korea. We are also encouraged by its expansion strategy, as it remains committed to opening new clubs in the domestic and international markets. However, investors are worried about Costco’s top-line performance that had missed the Zacks Consensus Estimate in the last nine consecutive quarters.
3 Stocks with High Probability to Beat Estimate
Here are three stocks you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Burlington Stores, Inc. (BURL - Free Report) has an Earnings ESP of +2.86% and a Zacks Rank #2.
Ulta Beauty, Inc. (ULTA - Free Report) has an Earnings ESP of +0.56% and a Zacks Rank #2.
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Check out Costco's (COST) Probability to Beat this Earnings
Costco Wholesale Corporation (COST - Free Report) is slated to report third-quarter fiscal 2017 results on May 25, 2017. In the preceding two quarters, the company underperformed the Zacks Consensus Estimate by 13.3% and 1.7%. Let’s see how things are shaping up prior to this announcement.
Investors are keeping their fingers crossed and hoping Costco to post positive earnings surprise in the quarter to be reported. The current Zacks Consensus Estimate for the quarter under review is $1.31, reflecting a year-over-year increase of over 5%. We observe that the Zacks Consensus Estimate has improved by a penny in the past 30 days. Analysts polled by Zacks expect revenues of $28,654 million, up 7% from the year-ago quarter.
Model Predicts Lower Probability
Our proven model does not conclusively show that Costco is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Costco has an Earnings ESP of -0.76% as the Most Accurate estimate is at $1.30, while the Zacks Consensus Estimate is pegged higher at $1.31. The company carries a Zacks Rank #3, which increases the predictive power. However, we need to have a positive ESP to be confident about an earnings surprise.
Costco Wholesale Corporation Price, Consensus and EPS Surprise
Costco Wholesale Corporation Price, Consensus and EPS Surprise | Costco Wholesale Corporation Quote
Factors at Play
Costco continues to be one of the dominant retail wholesalers based on its scale and quality of merchandise offered. A differentiated product range enables the company to ensure an upscale shopping experience for its members, resulting in market share gains. Moreover, Costco continues to maintain a healthy membership renewal rate. Further, it is gradually expanding eCommerce capabilities in the U.S., Canada, U.K., Mexico, Taiwan and Korea. We are also encouraged by its expansion strategy, as it remains committed to opening new clubs in the domestic and international markets. However, investors are worried about Costco’s top-line performance that had missed the Zacks Consensus Estimate in the last nine consecutive quarters.
3 Stocks with High Probability to Beat Estimate
Here are three stocks you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Best Buy Co., Inc. (BBY - Free Report) has an Earnings ESP of +10.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Burlington Stores, Inc. (BURL - Free Report) has an Earnings ESP of +2.86% and a Zacks Rank #2.
Ulta Beauty, Inc. (ULTA - Free Report) has an Earnings ESP of +0.56% and a Zacks Rank #2.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>