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Costco (COST) Stock Drops Despite Market Gains: Important Facts to Note
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Costco (COST - Free Report) ended the recent trading session at $978.85, demonstrating a -1.25% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.32%. At the same time, the Dow added 1.04%, and the tech-heavy Nasdaq gained 0.14%.
The warehouse club operator's stock has climbed by 2.44% in the past month, exceeding the Retail-Wholesale sector's gain of 2.39% and lagging the S&P 500's gain of 3.08%.
The investment community will be closely monitoring the performance of Costco in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $5.8, reflecting a 12.62% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $85.93 billion, up 7.82% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $17.97 per share and revenue of $274.97 billion, which would represent changes of +11.55% and +8.06%, respectively, from the prior 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 business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Costco is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Costco currently has a Forward P/E ratio of 55.17. This indicates a premium in contrast to its industry's Forward P/E of 23.28.
We can additionally observe that COST currently boasts a PEG ratio of 6.16. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Discount Stores was holding an average PEG ratio of 2.84 at yesterday's closing price.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 189, putting it in the bottom 24% 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.
To follow COST in the coming trading sessions, be sure to utilize Zacks.com.
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Costco (COST) Stock Drops Despite Market Gains: Important Facts to Note
Costco (COST - Free Report) ended the recent trading session at $978.85, demonstrating a -1.25% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.32%. At the same time, the Dow added 1.04%, and the tech-heavy Nasdaq gained 0.14%.
The warehouse club operator's stock has climbed by 2.44% in the past month, exceeding the Retail-Wholesale sector's gain of 2.39% and lagging the S&P 500's gain of 3.08%.
The investment community will be closely monitoring the performance of Costco in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $5.8, reflecting a 12.62% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $85.93 billion, up 7.82% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $17.97 per share and revenue of $274.97 billion, which would represent changes of +11.55% and +8.06%, respectively, from the prior 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 business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Costco is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Costco currently has a Forward P/E ratio of 55.17. This indicates a premium in contrast to its industry's Forward P/E of 23.28.
We can additionally observe that COST currently boasts a PEG ratio of 6.16. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Discount Stores was holding an average PEG ratio of 2.84 at yesterday's closing price.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 189, putting it in the bottom 24% 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.
To follow COST in the coming trading sessions, be sure to utilize Zacks.com.