Costco (COST - Free Report) closed the most recent trading day at $245.55, moving +0.09% from the previous trading session. This change outpaced the S&P 500's 0.23% loss on the day. Meanwhile, the Dow lost 0.01%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Coming into today, shares of the warehouse club operator had gained 3.5% in the past month. In that same time, the Retail-Wholesale sector gained 4.53%, while the S&P 500 gained 3.16%.
COST will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.81, up 6.47% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.84 billion, up 7.65% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.91 per share and revenue of $152.53 billion. These totals would mark changes of +15.81% and +7.73%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for COST. 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 company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.26% higher. COST is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that COST has a Forward P/E ratio of 31.01 right now. This valuation marks a premium compared to its industry's average Forward P/E of 20.9.
We can also see that COST currently has a PEG ratio of 3.48. 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. The Retail - Discount Stores industry currently had an average PEG ratio of 2 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 78, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.