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Costco (COST) Stock Moves -0.53%: What You Should Know
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Costco (COST - Free Report) closed at $558.51 in the latest trading session, marking a -0.53% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.16%. At the same time, the Dow lost 1.02%, and the tech-heavy Nasdaq lost 1.14%.
Heading into today, shares of the warehouse club operator had gained 1.54% over the past month, lagging the Retail-Wholesale sector's gain of 2.34% and outpacing the S&P 500's loss of 0.27% in that time.
Costco will be looking to display strength as it nears its next earnings release, which is expected to be September 26, 2023. On that day, Costco is projected to report earnings of $4.72 per share, which would represent year-over-year growth of 12.38%. Meanwhile, our latest consensus estimate is calling for revenue of $78.86 billion, up 9.39% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $14.39 per share and revenue of $242.21 billion, which would represent changes of +9.51% and +6.72%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Costco. 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.06% lower. Costco is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Costco is holding a Forward P/E ratio of 39.02. For comparison, its industry has an average Forward P/E of 24.12, which means Costco is trading at a premium to the group.
It is also worth noting that COST currently has a PEG ratio of 4.44. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Discount Stores industry currently had an average PEG ratio of 2.06 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 24% 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.
To follow COST in the coming trading sessions, be sure to utilize Zacks.com.
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Costco (COST) Stock Moves -0.53%: What You Should Know
Costco (COST - Free Report) closed at $558.51 in the latest trading session, marking a -0.53% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.16%. At the same time, the Dow lost 1.02%, and the tech-heavy Nasdaq lost 1.14%.
Heading into today, shares of the warehouse club operator had gained 1.54% over the past month, lagging the Retail-Wholesale sector's gain of 2.34% and outpacing the S&P 500's loss of 0.27% in that time.
Costco will be looking to display strength as it nears its next earnings release, which is expected to be September 26, 2023. On that day, Costco is projected to report earnings of $4.72 per share, which would represent year-over-year growth of 12.38%. Meanwhile, our latest consensus estimate is calling for revenue of $78.86 billion, up 9.39% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $14.39 per share and revenue of $242.21 billion, which would represent changes of +9.51% and +6.72%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Costco. 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.06% lower. Costco is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Costco is holding a Forward P/E ratio of 39.02. For comparison, its industry has an average Forward P/E of 24.12, which means Costco is trading at a premium to the group.
It is also worth noting that COST currently has a PEG ratio of 4.44. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Discount Stores industry currently had an average PEG ratio of 2.06 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 24% 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.
To follow COST in the coming trading sessions, be sure to utilize Zacks.com.