We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Costco (COST) Outperforms Broader Market: What You Need to Know
Read MoreHide Full Article
Costco (COST - Free Report) closed at $936.33 in the latest trading session, marking a +1.16% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.53%. Elsewhere, the Dow gained 0.52%, while the tech-heavy Nasdaq added 0.52%.
The warehouse club operator's shares have seen a decrease of 2.81% over the last month, surpassing the Retail-Wholesale sector's loss of 5.41% and falling behind the S&P 500's gain of 0.71%.
Market participants will be closely following the financial results of Costco in its upcoming release. The company is forecasted to report an EPS of $4.24, showcasing a 10.99% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $67.19 billion, up 8.1% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $19.99 per share and revenue of $296.49 billion. These totals would mark changes of +11.12% and +7.72%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Costco. Recent revisions tend to reflect the latest near-term business trends. 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.72% higher. Costco currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Costco is currently being traded at a Forward P/E ratio of 46.31. This expresses a premium compared to the average Forward P/E of 23.29 of its industry.
Meanwhile, COST's PEG ratio is currently 5.61. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. COST's industry had an average PEG ratio of 2.62 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 39, which puts it in the top 16% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Costco (COST) Outperforms Broader Market: What You Need to Know
Costco (COST - Free Report) closed at $936.33 in the latest trading session, marking a +1.16% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.53%. Elsewhere, the Dow gained 0.52%, while the tech-heavy Nasdaq added 0.52%.
The warehouse club operator's shares have seen a decrease of 2.81% over the last month, surpassing the Retail-Wholesale sector's loss of 5.41% and falling behind the S&P 500's gain of 0.71%.
Market participants will be closely following the financial results of Costco in its upcoming release. The company is forecasted to report an EPS of $4.24, showcasing a 10.99% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $67.19 billion, up 8.1% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $19.99 per share and revenue of $296.49 billion. These totals would mark changes of +11.12% and +7.72%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Costco. Recent revisions tend to reflect the latest near-term business trends. 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.72% higher. Costco currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Costco is currently being traded at a Forward P/E ratio of 46.31. This expresses a premium compared to the average Forward P/E of 23.29 of its industry.
Meanwhile, COST's PEG ratio is currently 5.61. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. COST's industry had an average PEG ratio of 2.62 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 39, which puts it in the top 16% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.