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Costco (COST) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Costco (COST - Free Report) closed at $502.04, marking a -0.4% move from the previous day. This change lagged the S&P 500's daily gain of 0.3%. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq added 5.74%.
Prior to today's trading, shares of the warehouse club operator had gained 2.6% over the past month. This has lagged the Retail-Wholesale sector's gain of 3.51% and outpaced the S&P 500's gain of 0.85% in that time.
Wall Street will be looking for positivity from Costco as it approaches its next earnings report date. This is expected to be May 25, 2023. In that report, analysts expect Costco to post earnings of $3.32 per share. This would mark year-over-year growth of 4.73%. Meanwhile, our latest consensus estimate is calling for revenue of $54.66 billion, up 3.92% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $14.36 per share and revenue of $242.02 billion, which would represent changes of +9.28% and +6.64%, respectively, from the prior year.
Any recent changes to analyst estimates for Costco should also be noted by investors. 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.
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 0.52% lower within the past month. Costco is currently a Zacks Rank #3 (Hold).
In terms of valuation, Costco is currently trading at a Forward P/E ratio of 35.11. This represents a premium compared to its industry's average Forward P/E of 22.49.
It is also worth noting that COST currently has a PEG ratio of 4.19. 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 2.02 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 100, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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Costco (COST) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Costco (COST - Free Report) closed at $502.04, marking a -0.4% move from the previous day. This change lagged the S&P 500's daily gain of 0.3%. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq added 5.74%.
Prior to today's trading, shares of the warehouse club operator had gained 2.6% over the past month. This has lagged the Retail-Wholesale sector's gain of 3.51% and outpaced the S&P 500's gain of 0.85% in that time.
Wall Street will be looking for positivity from Costco as it approaches its next earnings report date. This is expected to be May 25, 2023. In that report, analysts expect Costco to post earnings of $3.32 per share. This would mark year-over-year growth of 4.73%. Meanwhile, our latest consensus estimate is calling for revenue of $54.66 billion, up 3.92% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $14.36 per share and revenue of $242.02 billion, which would represent changes of +9.28% and +6.64%, respectively, from the prior year.
Any recent changes to analyst estimates for Costco should also be noted by investors. 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.
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 0.52% lower within the past month. Costco is currently a Zacks Rank #3 (Hold).
In terms of valuation, Costco is currently trading at a Forward P/E ratio of 35.11. This represents a premium compared to its industry's average Forward P/E of 22.49.
It is also worth noting that COST currently has a PEG ratio of 4.19. 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 2.02 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 100, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.