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Costco (COST) Dips More Than Broader Markets: What You Should Know
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Costco (COST - Free Report) closed the most recent trading day at $506.56, moving -0.61% from the previous trading session. This move lagged the S&P 500's daily loss of 0.38%. Elsewhere, the Dow lost 0.5%, while the tech-heavy Nasdaq lost 0.05%.
Coming into today, shares of the warehouse club operator had gained 1.33% in the past month. In that same time, the Retail-Wholesale sector lost 6.47%, while the S&P 500 lost 6.25%.
Costco will be looking to display strength as it nears its next earnings release, which is expected to be March 3, 2022. The company is expected to report EPS of $2.67, up 24.77% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $51.05 billion, up 14.03% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.67 per share and revenue of $218.63 billion, which would represent changes of +14.35% and +11.59%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Costco. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. The Zacks Consensus EPS estimate has moved 0.32% higher within the past month. Costco currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Costco is currently trading at a Forward P/E ratio of 40.24. Its industry sports an average Forward P/E of 18.43, so we one might conclude that Costco is trading at a premium comparatively.
Also, we should mention that COST has a PEG ratio of 4.58. 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 1.55 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 229, which puts it in the bottom 11% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Costco (COST) Dips More Than Broader Markets: What You Should Know
Costco (COST - Free Report) closed the most recent trading day at $506.56, moving -0.61% from the previous trading session. This move lagged the S&P 500's daily loss of 0.38%. Elsewhere, the Dow lost 0.5%, while the tech-heavy Nasdaq lost 0.05%.
Coming into today, shares of the warehouse club operator had gained 1.33% in the past month. In that same time, the Retail-Wholesale sector lost 6.47%, while the S&P 500 lost 6.25%.
Costco will be looking to display strength as it nears its next earnings release, which is expected to be March 3, 2022. The company is expected to report EPS of $2.67, up 24.77% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $51.05 billion, up 14.03% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.67 per share and revenue of $218.63 billion, which would represent changes of +14.35% and +11.59%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Costco. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. The Zacks Consensus EPS estimate has moved 0.32% higher within the past month. Costco currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Costco is currently trading at a Forward P/E ratio of 40.24. Its industry sports an average Forward P/E of 18.43, so we one might conclude that Costco is trading at a premium comparatively.
Also, we should mention that COST has a PEG ratio of 4.58. 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 1.55 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 229, which puts it in the bottom 11% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.