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) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
Costco (COST - Free Report) closed the most recent trading day at $961.85, moving +1.29% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.65%. Meanwhile, the Dow experienced a rise of 0.13%, and the technology-dominated Nasdaq saw an increase of 0.81%.
Shares of the warehouse club operator have appreciated by 3.6% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 4.78%, and outperforming the S&P 500's gain of 2.38%.
Market participants will be closely following the financial results of Costco in its upcoming release. On that day, Costco is projected to report earnings of $6.51 per share, which would represent year-over-year growth of 10.9%. Alongside, our most recent consensus estimate is anticipating revenue of $94.46 billion, indicating a 9.64% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $20.42 per share and a revenue of $301.94 billion, demonstrating changes of +13.51% and +9.7%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Costco. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.2% higher. Costco is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Costco has a Forward P/E ratio of 46.49 right now. This denotes a premium relative to the industry average Forward P/E of 29.42.
One should further note that COST currently holds a PEG ratio of 4.52. 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 average PEG ratio for the Retail - Discount Stores industry stood at 2.78 at the close of the market yesterday.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 80, finds itself in the top 33% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
View the Zacks #1 Rank List
Image: Bigstock
Costco (COST) Outpaces Stock Market Gains: What You Should Know
Costco (COST - Free Report) closed the most recent trading day at $961.85, moving +1.29% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.65%. Meanwhile, the Dow experienced a rise of 0.13%, and the technology-dominated Nasdaq saw an increase of 0.81%.
Shares of the warehouse club operator have appreciated by 3.6% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 4.78%, and outperforming the S&P 500's gain of 2.38%.
Market participants will be closely following the financial results of Costco in its upcoming release. On that day, Costco is projected to report earnings of $6.51 per share, which would represent year-over-year growth of 10.9%. Alongside, our most recent consensus estimate is anticipating revenue of $94.46 billion, indicating a 9.64% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $20.42 per share and a revenue of $301.94 billion, demonstrating changes of +13.51% and +9.7%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Costco. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.2% higher. Costco is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Costco has a Forward P/E ratio of 46.49 right now. This denotes a premium relative to the industry average Forward P/E of 29.42.
One should further note that COST currently holds a PEG ratio of 4.52. 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 average PEG ratio for the Retail - Discount Stores industry stood at 2.78 at the close of the market yesterday.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 80, finds itself in the top 33% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.