In the latest trading session, Costco (COST - Free Report) closed at $218.57, marking a -0.34% move from the previous day. This change lagged the S&P 500's daily gain of 0.3%. Meanwhile, the Dow 0%, and the Nasdaq, a tech-heavy index, added 0.92%.
Coming into today, shares of the warehouse club operator had lost 2.32% in the past month. In that same time, the Retail-Wholesale sector lost 3.96%, while the S&P 500 lost 4.06%.
Investors will be hoping for strength from COST as it approaches its next earnings release, which is expected to be December 13, 2018. The company is expected to report EPS of $1.61, up 18.38% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $34.53 billion, up 8.57% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.68 per share and revenue of $152.16 billion, which would represent changes of +12.45% and +7.48%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for COST. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.11% higher. COST is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that COST has a Forward P/E ratio of 28.46 right now. For comparison, its industry has an average Forward P/E of 18.7, which means COST is trading at a premium to the group.
Investors should also note that COST has a PEG ratio of 2.8 right now. 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 currently had an average PEG ratio of 1.5 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 66, which puts it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the 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.