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Costco (COST) Gains As Market Dips: What You Should Know
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Costco (COST - Free Report) closed at $490.16 in the latest trading session, marking a +0.43% move from the prior day. This move outpaced the S&P 500's daily loss of 0.97%. At the same time, the Dow lost 0.96%, and the tech-heavy Nasdaq gained 0.23%.
Heading into today, shares of the warehouse club operator had lost 10.52% over the past month, lagging the Retail-Wholesale sector's loss of 5.18% and the S&P 500's loss of 0.78% in that time.
Costco will be looking to display strength as it nears its next earnings release, which is expected to be March 3, 2022. On that day, Costco is projected to report earnings of $2.64 per share, which would represent year-over-year growth of 23.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $50.4 billion, up 12.57% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.63 per share and revenue of $217.25 billion, which would represent changes of +13.99% and +10.88%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Costco. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 0.67% higher within the past month. Costco is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Costco is holding a Forward P/E ratio of 38.66. This valuation marks a premium compared to its industry's average Forward P/E of 22.06.
It is also worth noting that COST currently has a PEG ratio of 4.4. 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 1.9 at yesterday's closing price.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 82, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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
Costco (COST - Free Report) closed at $490.16 in the latest trading session, marking a +0.43% move from the prior day. This move outpaced the S&P 500's daily loss of 0.97%. At the same time, the Dow lost 0.96%, and the tech-heavy Nasdaq gained 0.23%.
Heading into today, shares of the warehouse club operator had lost 10.52% over the past month, lagging the Retail-Wholesale sector's loss of 5.18% and the S&P 500's loss of 0.78% in that time.
Costco will be looking to display strength as it nears its next earnings release, which is expected to be March 3, 2022. On that day, Costco is projected to report earnings of $2.64 per share, which would represent year-over-year growth of 23.36%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $50.4 billion, up 12.57% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.63 per share and revenue of $217.25 billion, which would represent changes of +13.99% and +10.88%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Costco. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 0.67% higher within the past month. Costco is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Costco is holding a Forward P/E ratio of 38.66. This valuation marks a premium compared to its industry's average Forward P/E of 22.06.
It is also worth noting that COST currently has a PEG ratio of 4.4. 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 1.9 at yesterday's closing price.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 82, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.