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Why the Market Dipped But Costco (COST) Gained Today
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In the latest market close, Costco (COST - Free Report) reached $722.58, with a +0.56% movement compared to the previous day. The stock's change was more than the S&P 500's daily loss of 0.95%. Elsewhere, the Dow saw a downswing of 1.09%, while the tech-heavy Nasdaq depreciated by 0.84%.
Shares of the warehouse club operator have depreciated by 2.48% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 1.44% and the S&P 500's gain of 1.78%.
The upcoming earnings release of Costco will be of great interest to investors. It is anticipated that the company will report an EPS of $3.67, marking a 7% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $57.48 billion, up 7.14% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $16 per share and revenue of $252.21 billion, indicating changes of +8.92% and +4.09%, respectively, compared to the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Costco. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.33% upward. Costco presently features a Zacks Rank of #3 (Hold).
Investors should also note Costco's current valuation metrics, including its Forward P/E ratio of 44.92. Its industry sports an average Forward P/E of 22.42, so one might conclude that Costco is trading at a premium comparatively.
Also, we should mention that COST has a PEG ratio of 4.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Discount Stores industry currently had an average PEG ratio of 1.99 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 44, this industry ranks in the top 18% of all industries, numbering over 250.
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.
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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Why the Market Dipped But Costco (COST) Gained Today
In the latest market close, Costco (COST - Free Report) reached $722.58, with a +0.56% movement compared to the previous day. The stock's change was more than the S&P 500's daily loss of 0.95%. Elsewhere, the Dow saw a downswing of 1.09%, while the tech-heavy Nasdaq depreciated by 0.84%.
Shares of the warehouse club operator have depreciated by 2.48% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 1.44% and the S&P 500's gain of 1.78%.
The upcoming earnings release of Costco will be of great interest to investors. It is anticipated that the company will report an EPS of $3.67, marking a 7% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $57.48 billion, up 7.14% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $16 per share and revenue of $252.21 billion, indicating changes of +8.92% and +4.09%, respectively, compared to the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Costco. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.33% upward. Costco presently features a Zacks Rank of #3 (Hold).
Investors should also note Costco's current valuation metrics, including its Forward P/E ratio of 44.92. Its industry sports an average Forward P/E of 22.42, so one might conclude that Costco is trading at a premium comparatively.
Also, we should mention that COST has a PEG ratio of 4.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Discount Stores industry currently had an average PEG ratio of 1.99 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 44, this industry ranks in the top 18% of all industries, numbering over 250.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.