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Costco (COST) Ascends While Market Falls: Some Facts to Note
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Costco (COST - Free Report) closed at $996.08 in the latest trading session, marking a +1.36% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.31%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq lost 1.38%.
Shares of the warehouse club operator witnessed a gain of 7.95% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 3.86%, and the S&P 500's gain of 0.87%.
The upcoming earnings release of Costco will be of great interest to investors. On that day, Costco is projected to report earnings of $4.87 per share, which would represent year-over-year growth of 12.21%. Meanwhile, the latest consensus estimate predicts the revenue to be $74.14 billion, indicating a 10.16% increase compared to the same quarter of the previous year.
COST's full-year Zacks Consensus Estimates are calling for earnings of $22.7 per share and revenue of $328.61 billion. These results would represent year-over-year changes of +11% and +8.4%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Costco. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.74% decrease. Costco is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Costco's current valuation metrics, including its Forward P/E ratio of 43.3. This valuation marks a premium compared to its industry average Forward P/E of 19.64.
It is also worth noting that COST currently has a PEG ratio of 4.2. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Discount Stores industry had an average PEG ratio of 1.89 as trading concluded yesterday.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 75, finds itself in the top 31% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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) Ascends While Market Falls: Some Facts to Note
Costco (COST - Free Report) closed at $996.08 in the latest trading session, marking a +1.36% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.31%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq lost 1.38%.
Shares of the warehouse club operator witnessed a gain of 7.95% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 3.86%, and the S&P 500's gain of 0.87%.
The upcoming earnings release of Costco will be of great interest to investors. On that day, Costco is projected to report earnings of $4.87 per share, which would represent year-over-year growth of 12.21%. Meanwhile, the latest consensus estimate predicts the revenue to be $74.14 billion, indicating a 10.16% increase compared to the same quarter of the previous year.
COST's full-year Zacks Consensus Estimates are calling for earnings of $22.7 per share and revenue of $328.61 billion. These results would represent year-over-year changes of +11% and +8.4%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Costco. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.74% decrease. Costco is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Costco's current valuation metrics, including its Forward P/E ratio of 43.3. This valuation marks a premium compared to its industry average Forward P/E of 19.64.
It is also worth noting that COST currently has a PEG ratio of 4.2. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Discount Stores industry had an average PEG ratio of 1.89 as trading concluded yesterday.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 75, finds itself in the top 31% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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.