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Costco (COST) Stock Declines While Market Improves: Some Information for Investors
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The latest trading session saw Costco (COST - Free Report) ending at $679.90, denoting a -0.96% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 0.53%. On the other hand, the Dow registered a gain of 0.64%, and the technology-centric Nasdaq increased by 0.19%.
Prior to today's trading, shares of the warehouse club operator had gained 2.96% over the past month. This has outpaced the Retail-Wholesale sector's gain of 0.63% and the S&P 500's gain of 2.48% in that time.
Market participants will be closely following the financial results of Costco in its upcoming release. It is anticipated that the company will report an EPS of $3.56, marking a 7.88% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $58.81 billion, indicating a 6.42% increase compared to the same quarter of the previous year.
COST's full-year Zacks Consensus Estimates are calling for earnings of $15.78 per share and revenue of $252.73 billion. These results would represent year-over-year changes of +7.42% and +4.31%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Costco. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.12% higher. Costco currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Costco is at present trading with a Forward P/E ratio of 43.51. For comparison, its industry has an average Forward P/E of 23.53, which means Costco is trading at a premium to the group.
Investors should also note that COST has a PEG ratio of 4.9 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. COST's industry had an average PEG ratio of 2.25 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 61, which puts it in the top 25% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Costco (COST) Stock Declines While Market Improves: Some Information for Investors
The latest trading session saw Costco (COST - Free Report) ending at $679.90, denoting a -0.96% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 0.53%. On the other hand, the Dow registered a gain of 0.64%, and the technology-centric Nasdaq increased by 0.19%.
Prior to today's trading, shares of the warehouse club operator had gained 2.96% over the past month. This has outpaced the Retail-Wholesale sector's gain of 0.63% and the S&P 500's gain of 2.48% in that time.
Market participants will be closely following the financial results of Costco in its upcoming release. It is anticipated that the company will report an EPS of $3.56, marking a 7.88% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $58.81 billion, indicating a 6.42% increase compared to the same quarter of the previous year.
COST's full-year Zacks Consensus Estimates are calling for earnings of $15.78 per share and revenue of $252.73 billion. These results would represent year-over-year changes of +7.42% and +4.31%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Costco. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.12% higher. Costco currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Costco is at present trading with a Forward P/E ratio of 43.51. For comparison, its industry has an average Forward P/E of 23.53, which means Costco is trading at a premium to the group.
Investors should also note that COST has a PEG ratio of 4.9 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. COST's industry had an average PEG ratio of 2.25 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 61, which puts it in the top 25% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.