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Costco (COST) Stock Slides as Market Rises: Facts to Know Before You Trade

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The latest trading session saw Costco (COST - Free Report) ending at $710.79, denoting a -0.05% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 0.23%. Meanwhile, the Dow experienced a rise of 0.37%, and the technology-dominated Nasdaq saw an increase of 0.07%.

Shares of the warehouse club operator witnessed a gain of 7.48% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 6.9% and the S&P 500's gain of 5.3%.

The investment community will be paying close attention to the earnings performance of Costco in its upcoming release. The company is slated to reveal its earnings on March 7, 2024. The company's earnings per share (EPS) are projected to be $3.56, reflecting a 7.88% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $58.81 billion, up 6.42% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $15.72 per share and a revenue of $252.74 billion, demonstrating changes of +7.01% and +4.31%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Costco. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

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. The Zacks Consensus EPS estimate has moved 0.06% higher within the past month. Currently, Costco is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Costco is presently being traded at a Forward P/E ratio of 45.25. Its industry sports an average Forward P/E of 21.53, so one might conclude that Costco is trading at a premium comparatively.

Meanwhile, COST's PEG ratio is currently 5.1. 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 average PEG ratio for the Retail - Discount Stores industry stood at 2.09 at the close of the market yesterday.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 85, putting it in the top 34% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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