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Costco (COST) Gains As Market Dips: What You Should Know
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Costco (COST - Free Report) closed the most recent trading day at $559.70, moving +0.64% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.7%. At the same time, the Dow lost 0.54%, and the tech-heavy Nasdaq lost 1.17%.
Heading into today, shares of the warehouse club operator had gained 5% over the past month, lagging the Retail-Wholesale sector's gain of 5.69% and outpacing the S&P 500's gain of 2.35% in that time.
Investors will be hoping for strength from Costco as it approaches its next earnings release, which is expected to be September 26, 2023. On that day, Costco is projected to report earnings of $4.72 per share, which would represent year-over-year growth of 12.38%. Meanwhile, our latest consensus estimate is calling for revenue of $78.86 billion, up 9.39% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.39 per share and revenue of $242.21 billion. These totals would mark changes of +9.51% and +6.72%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Costco. Recent revisions tend to reflect the latest 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. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% lower. Costco currently has a Zacks Rank of #3 (Hold).
Investors should also note Costco's current valuation metrics, including its Forward P/E ratio of 38.65. This valuation marks a premium compared to its industry's average Forward P/E of 24.25.
Meanwhile, COST's PEG ratio is currently 4.39. 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 2.19 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 198, putting it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Costco (COST) Gains As Market Dips: What You Should Know
Costco (COST - Free Report) closed the most recent trading day at $559.70, moving +0.64% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.7%. At the same time, the Dow lost 0.54%, and the tech-heavy Nasdaq lost 1.17%.
Heading into today, shares of the warehouse club operator had gained 5% over the past month, lagging the Retail-Wholesale sector's gain of 5.69% and outpacing the S&P 500's gain of 2.35% in that time.
Investors will be hoping for strength from Costco as it approaches its next earnings release, which is expected to be September 26, 2023. On that day, Costco is projected to report earnings of $4.72 per share, which would represent year-over-year growth of 12.38%. Meanwhile, our latest consensus estimate is calling for revenue of $78.86 billion, up 9.39% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.39 per share and revenue of $242.21 billion. These totals would mark changes of +9.51% and +6.72%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Costco. Recent revisions tend to reflect the latest 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. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% lower. Costco currently has a Zacks Rank of #3 (Hold).
Investors should also note Costco's current valuation metrics, including its Forward P/E ratio of 38.65. This valuation marks a premium compared to its industry's average Forward P/E of 24.25.
Meanwhile, COST's PEG ratio is currently 4.39. 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 2.19 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 198, putting it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.