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Costco (COST - Free Report) closed at $683.24 in the latest trading session, marking a +1.43% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.08%. Meanwhile, the Dow experienced a drop of 0.31%, and the technology-dominated Nasdaq saw an increase of 0.02%.
Shares of the warehouse club operator witnessed a gain of 6.79% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 4.89% and the S&P 500's gain of 3.52%.
Market participants will be closely following the financial results of Costco in its upcoming release. The company's earnings per share (EPS) are projected to be $3.56, reflecting a 7.88% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $58.81 billion, indicating a 6.42% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.78 per share and a revenue of $252.73 billion, indicating changes of +7.42% and +4.31%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Costco. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.77% lower. Costco is currently a Zacks Rank #3 (Hold).
In terms of valuation, Costco is presently being traded at a Forward P/E ratio of 42.69. This denotes a premium relative to the industry's average Forward P/E of 23.99.
We can also see that COST currently has a PEG ratio of 4.81. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Retail - Discount Stores industry held an average PEG ratio of 2.26.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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Why Costco (COST) Outpaced the Stock Market Today
Costco (COST - Free Report) closed at $683.24 in the latest trading session, marking a +1.43% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.08%. Meanwhile, the Dow experienced a drop of 0.31%, and the technology-dominated Nasdaq saw an increase of 0.02%.
Shares of the warehouse club operator witnessed a gain of 6.79% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 4.89% and the S&P 500's gain of 3.52%.
Market participants will be closely following the financial results of Costco in its upcoming release. The company's earnings per share (EPS) are projected to be $3.56, reflecting a 7.88% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $58.81 billion, indicating a 6.42% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.78 per share and a revenue of $252.73 billion, indicating changes of +7.42% and +4.31%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Costco. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.77% lower. Costco is currently a Zacks Rank #3 (Hold).
In terms of valuation, Costco is presently being traded at a Forward P/E ratio of 42.69. This denotes a premium relative to the industry's average Forward P/E of 23.99.
We can also see that COST currently has a PEG ratio of 4.81. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Retail - Discount Stores industry held an average PEG ratio of 2.26.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 73, putting it in the top 29% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.