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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 $496.03, moving -0.18% from the previous trading session. This change lagged the S&P 500's daily loss of 0.01%. At the same time, the Dow lost 0.23%, and the tech-heavy Nasdaq gained 0.97%.
Heading into today, shares of the warehouse club operator had gained 1.23% over the past month, lagging the Retail-Wholesale sector's gain of 4.79% and the S&P 500's gain of 6.23% in that time.
Investors will be hoping for strength from Costco as it approaches its next earnings release, which is expected to be May 25, 2023. On that day, Costco is projected to report earnings of $3.36 per share, which would represent year-over-year growth of 5.99%. Our most recent consensus estimate is calling for quarterly revenue of $54.86 billion, up 4.3% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.43 per share and revenue of $242.54 billion. These totals would mark changes of +9.82% and +6.87%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Costco. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 0.33% higher within the past month. Costco is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Costco has a Forward P/E ratio of 34.43 right now. This valuation marks a premium compared to its industry's average Forward P/E of 22.1.
Investors should also note that COST has a PEG ratio of 3.73 right now. 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. The Retail - Discount Stores industry currently had an average PEG ratio of 2 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 190, putting it in the bottom 25% 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.
To follow COST in the coming trading sessions, be sure to utilize Zacks.com.
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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 $496.03, moving -0.18% from the previous trading session. This change lagged the S&P 500's daily loss of 0.01%. At the same time, the Dow lost 0.23%, and the tech-heavy Nasdaq gained 0.97%.
Heading into today, shares of the warehouse club operator had gained 1.23% over the past month, lagging the Retail-Wholesale sector's gain of 4.79% and the S&P 500's gain of 6.23% in that time.
Investors will be hoping for strength from Costco as it approaches its next earnings release, which is expected to be May 25, 2023. On that day, Costco is projected to report earnings of $3.36 per share, which would represent year-over-year growth of 5.99%. Our most recent consensus estimate is calling for quarterly revenue of $54.86 billion, up 4.3% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.43 per share and revenue of $242.54 billion. These totals would mark changes of +9.82% and +6.87%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Costco. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 0.33% higher within the past month. Costco is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Costco has a Forward P/E ratio of 34.43 right now. This valuation marks a premium compared to its industry's average Forward P/E of 22.1.
Investors should also note that COST has a PEG ratio of 3.73 right now. 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. The Retail - Discount Stores industry currently had an average PEG ratio of 2 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 190, putting it in the bottom 25% 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.
To follow COST in the coming trading sessions, be sure to utilize Zacks.com.