We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Costco (COST) Stock Sinks As Market Gains: What You Should Know
Read MoreHide Full Article
Costco (COST - Free Report) closed at $340.70 in the latest trading session, marking a -0.42% move from the prior day. This change lagged the S&P 500's daily gain of 1.14%. Elsewhere, the Dow gained 1.35%, while the tech-heavy Nasdaq added 0.99%.
Heading into today, shares of the warehouse club operator had lost 3.22% over the past month, lagging the Retail-Wholesale sector's loss of 1.4% and the S&P 500's gain of 1.2% 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 March 4, 2021. The company is expected to report EPS of $2.41, up 14.76% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $44.41 billion, up 13.66% from the prior-year quarter.
COST's full-year Zacks Consensus Estimates are calling for earnings of $10.04 per share and revenue of $185.68 billion. These results would represent year-over-year changes of +13.45% and +11.35%, respectively.
It is also important to note the recent changes to analyst estimates for COST. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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).
Looking at its valuation, COST is holding a Forward P/E ratio of 34.89. This represents a premium compared to its industry's average Forward P/E of 24.06.
Investors should also note that COST has a PEG ratio of 4 right now. 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. The Retail - Discount Stores was holding an average PEG ratio of 2.54 at yesterday's closing price.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Costco (COST) Stock Sinks As Market Gains: What You Should Know
Costco (COST - Free Report) closed at $340.70 in the latest trading session, marking a -0.42% move from the prior day. This change lagged the S&P 500's daily gain of 1.14%. Elsewhere, the Dow gained 1.35%, while the tech-heavy Nasdaq added 0.99%.
Heading into today, shares of the warehouse club operator had lost 3.22% over the past month, lagging the Retail-Wholesale sector's loss of 1.4% and the S&P 500's gain of 1.2% 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 March 4, 2021. The company is expected to report EPS of $2.41, up 14.76% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $44.41 billion, up 13.66% from the prior-year quarter.
COST's full-year Zacks Consensus Estimates are calling for earnings of $10.04 per share and revenue of $185.68 billion. These results would represent year-over-year changes of +13.45% and +11.35%, respectively.
It is also important to note the recent changes to analyst estimates for COST. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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).
Looking at its valuation, COST is holding a Forward P/E ratio of 34.89. This represents a premium compared to its industry's average Forward P/E of 24.06.
Investors should also note that COST has a PEG ratio of 4 right now. 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. The Retail - Discount Stores was holding an average PEG ratio of 2.54 at yesterday's closing price.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% 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.