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Costco (COST) Gains As Market Dips: What You Should Know
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In the latest trading session, Costco (COST - Free Report) closed at $358.04, marking a +1.14% move from the previous day. This move outpaced the S&P 500's daily loss of 0.03%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq lost 0.58%.
Prior to today's trading, shares of the warehouse club operator had lost 2.6% over the past month. This has lagged the Retail-Wholesale sector's gain of 5.12% and the S&P 500's gain of 4.45% in that time.
Investors will be hoping for strength from COST as it approaches its next earnings release. In that report, analysts expect COST to post earnings of $2.41 per share. This would mark year-over-year growth of 14.76%. Meanwhile, our latest consensus estimate is calling for revenue of $44.41 billion, up 13.66% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.04 per share and revenue of $185.68 billion. These totals would mark changes of +13.45% and +11.35%, respectively, from last year.
Any recent changes to analyst estimates for COST should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. The Zacks Consensus EPS estimate has moved 0.9% higher within the past month. COST is currently a Zacks Rank #3 (Hold).
Digging into valuation, COST currently has a Forward P/E ratio of 35.36. This represents a premium compared to its industry's average Forward P/E of 23.95.
We can also see that COST currently has a PEG ratio of 4.05. 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. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 2.53 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 107, which puts it in the top 42% 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) Gains As Market Dips: What You Should Know
In the latest trading session, Costco (COST - Free Report) closed at $358.04, marking a +1.14% move from the previous day. This move outpaced the S&P 500's daily loss of 0.03%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq lost 0.58%.
Prior to today's trading, shares of the warehouse club operator had lost 2.6% over the past month. This has lagged the Retail-Wholesale sector's gain of 5.12% and the S&P 500's gain of 4.45% in that time.
Investors will be hoping for strength from COST as it approaches its next earnings release. In that report, analysts expect COST to post earnings of $2.41 per share. This would mark year-over-year growth of 14.76%. Meanwhile, our latest consensus estimate is calling for revenue of $44.41 billion, up 13.66% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.04 per share and revenue of $185.68 billion. These totals would mark changes of +13.45% and +11.35%, respectively, from last year.
Any recent changes to analyst estimates for COST should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. The Zacks Consensus EPS estimate has moved 0.9% higher within the past month. COST is currently a Zacks Rank #3 (Hold).
Digging into valuation, COST currently has a Forward P/E ratio of 35.36. This represents a premium compared to its industry's average Forward P/E of 23.95.
We can also see that COST currently has a PEG ratio of 4.05. 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. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 2.53 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 107, which puts it in the top 42% 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.