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Costco (COST) Stock Sinks As Market Gains: Here's Why
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The latest trading session saw Costco (COST - Free Report) ending at $726.33, denoting a -0.39% adjustment from its last day's close. This change lagged the S&P 500's daily gain of 0.32%. Meanwhile, the Dow experienced a rise of 0.38%, and the technology-dominated Nasdaq saw an increase of 0.35%.
Shares of the warehouse club operator witnessed a loss of 0.47% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 1.39% and the S&P 500's loss of 2%.
Market participants will be closely following the financial results of Costco in its upcoming release. The company plans to announce its earnings on May 30, 2024. The company's upcoming EPS is projected at $3.69, signifying a 7.58% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $57.97 billion, reflecting an 8.06% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $16.03 per share and revenue of $253.07 billion. These totals would mark changes of +9.12% and +4.45%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Costco. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 0.22% higher within the past month. At present, Costco boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Costco is presently being traded at a Forward P/E ratio of 45.48. This signifies a premium in comparison to the average Forward P/E of 21.11 for its industry.
Also, we should mention that COST has a PEG ratio of 4.8. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Discount Stores was holding an average PEG ratio of 1.9 at yesterday's closing price.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 36, this industry ranks in the top 15% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Costco (COST) Stock Sinks As Market Gains: Here's Why
The latest trading session saw Costco (COST - Free Report) ending at $726.33, denoting a -0.39% adjustment from its last day's close. This change lagged the S&P 500's daily gain of 0.32%. Meanwhile, the Dow experienced a rise of 0.38%, and the technology-dominated Nasdaq saw an increase of 0.35%.
Shares of the warehouse club operator witnessed a loss of 0.47% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 1.39% and the S&P 500's loss of 2%.
Market participants will be closely following the financial results of Costco in its upcoming release. The company plans to announce its earnings on May 30, 2024. The company's upcoming EPS is projected at $3.69, signifying a 7.58% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $57.97 billion, reflecting an 8.06% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $16.03 per share and revenue of $253.07 billion. These totals would mark changes of +9.12% and +4.45%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Costco. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 0.22% higher within the past month. At present, Costco boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Costco is presently being traded at a Forward P/E ratio of 45.48. This signifies a premium in comparison to the average Forward P/E of 21.11 for its industry.
Also, we should mention that COST has a PEG ratio of 4.8. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Discount Stores was holding an average PEG ratio of 1.9 at yesterday's closing price.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 36, this industry ranks in the top 15% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.