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Costco (COST) Outperforms Broader Market: What You Need to Know
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Costco (COST - Free Report) closed at $756.45 in the latest trading session, marking a +1.69% move from the prior day. This move outpaced the S&P 500's daily gain of 1.03%. On the other hand, the Dow registered a gain of 0.46%, and the technology-centric Nasdaq increased by 1.19%.
Coming into today, shares of the warehouse club operator had gained 4.23% in the past month. In that same time, the Retail-Wholesale sector gained 0.23%, while the S&P 500 lost 1.57%.
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. On that day, Costco is projected to report earnings of $3.69 per share, which would represent year-over-year growth of 7.58%. Simultaneously, our latest consensus estimate expects the revenue to be $57.97 billion, showing an 8.06% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $16.03 per share and revenue of $253.07 billion, which would represent changes of +9.12% and +4.45%, respectively, from the prior 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.22% higher. As of now, Costco holds a Zacks Rank of #3 (Hold).
In terms of valuation, Costco is currently trading at a Forward P/E ratio of 46.4. This signifies a premium in comparison to the average Forward P/E of 20.56 for its industry.
It's also important to note that COST currently trades at a PEG ratio of 4.89. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Retail - Discount Stores industry was having an average PEG ratio of 1.86.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 50, positioning it in the top 20% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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) Outperforms Broader Market: What You Need to Know
Costco (COST - Free Report) closed at $756.45 in the latest trading session, marking a +1.69% move from the prior day. This move outpaced the S&P 500's daily gain of 1.03%. On the other hand, the Dow registered a gain of 0.46%, and the technology-centric Nasdaq increased by 1.19%.
Coming into today, shares of the warehouse club operator had gained 4.23% in the past month. In that same time, the Retail-Wholesale sector gained 0.23%, while the S&P 500 lost 1.57%.
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. On that day, Costco is projected to report earnings of $3.69 per share, which would represent year-over-year growth of 7.58%. Simultaneously, our latest consensus estimate expects the revenue to be $57.97 billion, showing an 8.06% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $16.03 per share and revenue of $253.07 billion, which would represent changes of +9.12% and +4.45%, respectively, from the prior 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.22% higher. As of now, Costco holds a Zacks Rank of #3 (Hold).
In terms of valuation, Costco is currently trading at a Forward P/E ratio of 46.4. This signifies a premium in comparison to the average Forward P/E of 20.56 for its industry.
It's also important to note that COST currently trades at a PEG ratio of 4.89. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Retail - Discount Stores industry was having an average PEG ratio of 1.86.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 50, positioning it in the top 20% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.