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Costco (COST) Gains As Market Dips: What You Should Know
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Costco (COST - Free Report) closed at $391.77 in the latest trading session, marking a +0.87% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.46%. Elsewhere, the Dow lost 0.91%, while the tech-heavy Nasdaq lost 0.06%.
Heading into today, shares of the warehouse club operator had gained 6.45% over the past month, outpacing the Retail-Wholesale sector's gain of 1.88% and lagging the S&P 500's gain of 7.53% in that time.
Wall Street will be looking for positivity from COST as it approaches its next earnings report date. This is expected to be December 10, 2020. The company is expected to report EPS of $2, up 15.61% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $42.43 billion, up 14.56% from the year-ago period.
COST's full-year Zacks Consensus Estimates are calling for earnings of $9.69 per share and revenue of $182.39 billion. These results would represent year-over-year changes of +9.49% and +9.37%, respectively.
Investors might also notice recent changes to analyst estimates for COST. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.98% higher. COST currently has a Zacks Rank of #3 (Hold).
Investors should also note COST's current valuation metrics, including its Forward P/E ratio of 40.08. This valuation marks a premium compared to its industry's average Forward P/E of 21.47.
We can also see that COST currently has a PEG ratio of 4.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 2.44 based on yesterday's closing prices.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 112, which puts it in the top 45% 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) Gains As Market Dips: What You Should Know
Costco (COST - Free Report) closed at $391.77 in the latest trading session, marking a +0.87% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.46%. Elsewhere, the Dow lost 0.91%, while the tech-heavy Nasdaq lost 0.06%.
Heading into today, shares of the warehouse club operator had gained 6.45% over the past month, outpacing the Retail-Wholesale sector's gain of 1.88% and lagging the S&P 500's gain of 7.53% in that time.
Wall Street will be looking for positivity from COST as it approaches its next earnings report date. This is expected to be December 10, 2020. The company is expected to report EPS of $2, up 15.61% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $42.43 billion, up 14.56% from the year-ago period.
COST's full-year Zacks Consensus Estimates are calling for earnings of $9.69 per share and revenue of $182.39 billion. These results would represent year-over-year changes of +9.49% and +9.37%, respectively.
Investors might also notice recent changes to analyst estimates for COST. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.98% higher. COST currently has a Zacks Rank of #3 (Hold).
Investors should also note COST's current valuation metrics, including its Forward P/E ratio of 40.08. This valuation marks a premium compared to its industry's average Forward P/E of 21.47.
We can also see that COST currently has a PEG ratio of 4.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 2.44 based on yesterday's closing prices.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 112, which puts it in the top 45% 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.