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Costco (COST) Dips More Than Broader Markets: What You Should Know
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Costco (COST - Free Report) closed at $215.23 in the latest trading session, marking a -0.87% move from the prior day. This change lagged the S&P 500's daily loss of 0.35%. At the same time, the Dow lost 0.4%, and the tech-heavy Nasdaq lost 0.39%.
Coming into today, shares of the warehouse club operator had gained 2.37% in the past month. In that same time, the Retail-Wholesale sector gained 2.56%, while the S&P 500 gained 4.48%.
Investors will be hoping for strength from COST as it approaches its next earnings release, which is expected to be March 7, 2019. On that day, COST is projected to report earnings of $1.67 per share, which would represent year-over-year growth of 17.61%. Our most recent consensus estimate is calling for quarterly revenue of $35.65 billion, up 8.05% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.65 per share and revenue of $152.81 billion, which would represent changes of +12.01% and +7.93%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for COST. These revisions help to show the ever-changing nature of 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.09% higher. COST is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that COST has a Forward P/E ratio of 28.37 right now. For comparison, its industry has an average Forward P/E of 19.41, which means COST is trading at a premium to the group.
Meanwhile, COST's PEG ratio is currently 2.84. 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. COST's industry had an average PEG ratio of 1.5 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 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.
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
Costco (COST - Free Report) closed at $215.23 in the latest trading session, marking a -0.87% move from the prior day. This change lagged the S&P 500's daily loss of 0.35%. At the same time, the Dow lost 0.4%, and the tech-heavy Nasdaq lost 0.39%.
Coming into today, shares of the warehouse club operator had gained 2.37% in the past month. In that same time, the Retail-Wholesale sector gained 2.56%, while the S&P 500 gained 4.48%.
Investors will be hoping for strength from COST as it approaches its next earnings release, which is expected to be March 7, 2019. On that day, COST is projected to report earnings of $1.67 per share, which would represent year-over-year growth of 17.61%. Our most recent consensus estimate is calling for quarterly revenue of $35.65 billion, up 8.05% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.65 per share and revenue of $152.81 billion, which would represent changes of +12.01% and +7.93%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for COST. These revisions help to show the ever-changing nature of 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.09% higher. COST is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that COST has a Forward P/E ratio of 28.37 right now. For comparison, its industry has an average Forward P/E of 19.41, which means COST is trading at a premium to the group.
Meanwhile, COST's PEG ratio is currently 2.84. 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. COST's industry had an average PEG ratio of 1.5 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 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.
You can find more information on all of these metrics, and much more, on Zacks.com.