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Costco (COST) Outpaces Stock Market Gains: What You Should Know
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Costco (COST - Free Report) closed the latest trading day at $596.78, indicating a +1.01% change from the previous session's end. The stock's change was more than the S&P 500's daily gain of 0.16%. Meanwhile, the Dow gained 0.47%, and the Nasdaq, a tech-heavy index, added 0.07%.
The the stock of warehouse club operator has risen by 2.87% in the past month, lagging the Retail-Wholesale sector's gain of 7.39% and the S&P 500's gain of 4.02%.
The upcoming earnings release of Costco will be of great interest to investors. The company's earnings report is expected on December 14, 2023. In that report, analysts expect Costco to post earnings of $3.43 per share. This would mark year-over-year growth of 10.65%. Alongside, our most recent consensus estimate is anticipating revenue of $57.69 billion, indicating a 5.98% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $15.71 per share and a revenue of $252.72 billion, representing changes of +6.94% and +4.31%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Costco. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 0.12% lower within the past month. As of now, Costco holds a Zacks Rank of #3 (Hold).
In terms of valuation, Costco is presently being traded at a Forward P/E ratio of 37.62. This signifies a premium in comparison to the average Forward P/E of 23.24 for its industry.
We can additionally observe that COST currently boasts a PEG ratio of 4.4. 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. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 2.22 based on yesterday's closing prices.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 155, putting it in the bottom 39% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Costco (COST) Outpaces Stock Market Gains: What You Should Know
Costco (COST - Free Report) closed the latest trading day at $596.78, indicating a +1.01% change from the previous session's end. The stock's change was more than the S&P 500's daily gain of 0.16%. Meanwhile, the Dow gained 0.47%, and the Nasdaq, a tech-heavy index, added 0.07%.
The the stock of warehouse club operator has risen by 2.87% in the past month, lagging the Retail-Wholesale sector's gain of 7.39% and the S&P 500's gain of 4.02%.
The upcoming earnings release of Costco will be of great interest to investors. The company's earnings report is expected on December 14, 2023. In that report, analysts expect Costco to post earnings of $3.43 per share. This would mark year-over-year growth of 10.65%. Alongside, our most recent consensus estimate is anticipating revenue of $57.69 billion, indicating a 5.98% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $15.71 per share and a revenue of $252.72 billion, representing changes of +6.94% and +4.31%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Costco. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 0.12% lower within the past month. As of now, Costco holds a Zacks Rank of #3 (Hold).
In terms of valuation, Costco is presently being traded at a Forward P/E ratio of 37.62. This signifies a premium in comparison to the average Forward P/E of 23.24 for its industry.
We can additionally observe that COST currently boasts a PEG ratio of 4.4. 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. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 2.22 based on yesterday's closing prices.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 155, putting it in the bottom 39% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.