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Costco (COST) Registers a Bigger Fall Than the Market: Important Facts to Note
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Costco (COST - Free Report) closed at $722.41 in the latest trading session, marking a -0.14% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.1% for the day. Meanwhile, the Dow gained 0.33%, and the Nasdaq, a tech-heavy index, lost 0.3%.
The the stock of warehouse club operator has risen by 5.88% in the past month, lagging the Retail-Wholesale sector's gain of 6.89% and overreaching the S&P 500's gain of 5.78%.
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 is predicted to post an EPS of $3.59, indicating an 8.79% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $59.08 billion, indicating a 6.9% growth compared to the corresponding quarter of the prior year.
COST's full-year Zacks Consensus Estimates are calling for earnings of $15.63 per share and revenue of $253.12 billion. These results would represent year-over-year changes of +6.4% and +4.47%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Costco. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 0.46% higher. As of now, Costco holds a Zacks Rank of #3 (Hold).
Investors should also note Costco's current valuation metrics, including its Forward P/E ratio of 46.28. Its industry sports an average Forward P/E of 21.95, so one might conclude that Costco is trading at a premium comparatively.
It's also important to note that COST currently trades at a PEG ratio of 5.12. 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. By the end of yesterday's trading, the Retail - Discount Stores industry had an average PEG ratio of 2.13.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 109, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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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Costco (COST) Registers a Bigger Fall Than the Market: Important Facts to Note
Costco (COST - Free Report) closed at $722.41 in the latest trading session, marking a -0.14% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.1% for the day. Meanwhile, the Dow gained 0.33%, and the Nasdaq, a tech-heavy index, lost 0.3%.
The the stock of warehouse club operator has risen by 5.88% in the past month, lagging the Retail-Wholesale sector's gain of 6.89% and overreaching the S&P 500's gain of 5.78%.
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 is predicted to post an EPS of $3.59, indicating an 8.79% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $59.08 billion, indicating a 6.9% growth compared to the corresponding quarter of the prior year.
COST's full-year Zacks Consensus Estimates are calling for earnings of $15.63 per share and revenue of $253.12 billion. These results would represent year-over-year changes of +6.4% and +4.47%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Costco. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 0.46% higher. As of now, Costco holds a Zacks Rank of #3 (Hold).
Investors should also note Costco's current valuation metrics, including its Forward P/E ratio of 46.28. Its industry sports an average Forward P/E of 21.95, so one might conclude that Costco is trading at a premium comparatively.
It's also important to note that COST currently trades at a PEG ratio of 5.12. 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. By the end of yesterday's trading, the Retail - Discount Stores industry had an average PEG ratio of 2.13.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 109, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.