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Costco (COST) Surpasses Market Returns: Some Facts Worth Knowing

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Costco (COST - Free Report) closed the most recent trading day at $1,062.54, moving +0.62% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.24%. Meanwhile, the Dow experienced a rise of 0.16%, and the technology-dominated Nasdaq saw an increase of 0.08%.

Shares of the warehouse club operator have appreciated by 11.43% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 5.98% and the S&P 500's gain of 2.37%.

Investors will be eagerly watching for the performance of Costco in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on March 6, 2025. The company is forecasted to report an EPS of $4.09, showcasing a 10.24% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $63.2 billion, up 8.15% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $18.03 per share and a revenue of $273.29 billion, signifying shifts of +11.92% and +7.4%, respectively, from the last 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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.1% higher. At present, Costco boasts a Zacks Rank of #2 (Buy).

Looking at its valuation, Costco is holding a Forward P/E ratio of 58.58. This denotes a premium relative to the industry's average Forward P/E of 19.02.

Investors should also note that COST has a PEG ratio of 6.28 right now. 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 of the close of trade yesterday, the Retail - Discount Stores industry held an average PEG ratio of 2.08.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 31, finds itself in the top 13% echelons of all 250+ industries.

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.

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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