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Costco (COST) Advances While Market Declines: Some Information for Investors
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Costco (COST - Free Report) closed at $1,018.21 in the latest trading session, marking a +1.99% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 1.21% for the day. On the other hand, the Dow registered a gain of 0.02%, and the technology-centric Nasdaq decreased by 2.6%.
Coming into today, shares of the warehouse club operator had gained 10.35% in the past month. In that same time, the Retail-Wholesale sector gained 3.07%, while the S&P 500 lost 0.03%.
The investment community will be closely monitoring the performance of Costco in its forthcoming earnings report. The company is forecasted to report an EPS of $4.87, showcasing a 12.21% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $74.14 billion, up 10.16% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $22.7 per share and a revenue of $328.53 billion, indicating changes of +11% and +8.37%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Costco. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
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, 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 past month, the Zacks Consensus EPS estimate has moved 0.81% higher. Right now, Costco possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Costco is holding a Forward P/E ratio of 43.99. This signifies a premium in comparison to the average Forward P/E of 20.83 for its industry.
We can also see that COST currently has a PEG ratio of 4.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Retail - Discount Stores industry had an average PEG ratio of 1.83.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 18, positioning it in the top 8% 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.
View the Zacks #1 Rank List
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Costco (COST) Advances While Market Declines: Some Information for Investors
Costco (COST - Free Report) closed at $1,018.21 in the latest trading session, marking a +1.99% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 1.21% for the day. On the other hand, the Dow registered a gain of 0.02%, and the technology-centric Nasdaq decreased by 2.6%.
Coming into today, shares of the warehouse club operator had gained 10.35% in the past month. In that same time, the Retail-Wholesale sector gained 3.07%, while the S&P 500 lost 0.03%.
The investment community will be closely monitoring the performance of Costco in its forthcoming earnings report. The company is forecasted to report an EPS of $4.87, showcasing a 12.21% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $74.14 billion, up 10.16% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $22.7 per share and a revenue of $328.53 billion, indicating changes of +11% and +8.37%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Costco. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
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, 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 past month, the Zacks Consensus EPS estimate has moved 0.81% higher. Right now, Costco possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Costco is holding a Forward P/E ratio of 43.99. This signifies a premium in comparison to the average Forward P/E of 20.83 for its industry.
We can also see that COST currently has a PEG ratio of 4.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Retail - Discount Stores industry had an average PEG ratio of 1.83.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 18, positioning it in the top 8% 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.