Costco (COST - Free Report) closed the most recent trading day at $273.94, moving -0.31% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.66%. Meanwhile, the Dow lost 0.34%, and the Nasdaq, a tech-heavy index, lost 1%.
Prior to today's trading, shares of the warehouse club operator had lost 0.63% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 1.94% and the S&P 500's loss of 1.1% in that time.
COST will be looking to display strength as it nears its next earnings release. In that report, analysts expect COST to post earnings of $2.53 per share. This would mark year-over-year growth of 7.2%. Our most recent consensus estimate is calling for quarterly revenue of $47.17 billion, up 6.21% from the year-ago period.
COST's full-year Zacks Consensus Estimates are calling for earnings of $8.04 per share and revenue of $152.45 billion. These results would represent year-over-year changes of +17.72% and +7.68%, respectively.
It is also important to note the recent changes to analyst estimates for COST. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. COST is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that COST has a Forward P/E ratio of 34.19 right now. For comparison, its industry has an average Forward P/E of 21.24, which means COST is trading at a premium to the group.
Meanwhile, COST's PEG ratio is currently 3.85. 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 1.91 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 63, which puts it in the top 25% 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.