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Costco (COST) Outpaces Stock Market Gains: What You Should Know
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Costco (COST - Free Report) closed the most recent trading day at $308.95, moving +1.33% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.13%. Elsewhere, the Dow gained 1.68%, while the tech-heavy Nasdaq added 0.43%.
Prior to today's trading, shares of the warehouse club operator had gained 4.65% over the past month. This has outpaced the Retail-Wholesale sector's gain of 2.45% and the S&P 500's gain of 2.1% in that time.
Investors will be hoping for strength from COST as it approaches its next earnings release, which is expected to be March 5, 2020. The company is expected to report EPS of $2.06, up 2.49% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $38.34 billion, up 8.31% from the year-ago period.
COST's full-year Zacks Consensus Estimates are calling for earnings of $8.61 per share and revenue of $162.96 billion. These results would represent year-over-year changes of +5.13% and +6.72%, respectively.
Investors should also note any recent changes to analyst estimates for COST. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.28% higher. COST is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that COST has a Forward P/E ratio of 35.42 right now. This valuation marks a premium compared to its industry's average Forward P/E of 21.27.
Also, we should mention that COST has a PEG ratio of 4.37. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Discount Stores industry currently had an average PEG ratio of 1.94 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Costco (COST) Outpaces Stock Market Gains: What You Should Know
Costco (COST - Free Report) closed the most recent trading day at $308.95, moving +1.33% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.13%. Elsewhere, the Dow gained 1.68%, while the tech-heavy Nasdaq added 0.43%.
Prior to today's trading, shares of the warehouse club operator had gained 4.65% over the past month. This has outpaced the Retail-Wholesale sector's gain of 2.45% and the S&P 500's gain of 2.1% in that time.
Investors will be hoping for strength from COST as it approaches its next earnings release, which is expected to be March 5, 2020. The company is expected to report EPS of $2.06, up 2.49% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $38.34 billion, up 8.31% from the year-ago period.
COST's full-year Zacks Consensus Estimates are calling for earnings of $8.61 per share and revenue of $162.96 billion. These results would represent year-over-year changes of +5.13% and +6.72%, respectively.
Investors should also note any recent changes to analyst estimates for COST. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.28% higher. COST is currently a Zacks Rank #2 (Buy).
Valuation is also important, so investors should note that COST has a Forward P/E ratio of 35.42 right now. This valuation marks a premium compared to its industry's average Forward P/E of 21.27.
Also, we should mention that COST has a PEG ratio of 4.37. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Discount Stores industry currently had an average PEG ratio of 1.94 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.