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Costco (COST) Beats Stock Market Upswing: What Investors Need to Know
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The latest trading session saw Costco (COST - Free Report) ending at $816.88, denoting a +1.88% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily gain of 1.04%. Meanwhile, the Dow gained 0.76%, and the Nasdaq, a tech-heavy index, added 1.03%.
Shares of the warehouse club operator have depreciated by 8.97% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 8.36% and the S&P 500's loss of 6.74%.
The upcoming earnings release of Costco will be of great interest to investors. The company's earnings report is expected on September 26, 2024. In that report, analysts expect Costco to post earnings of $5.02 per share. This would mark year-over-year growth of 3.29%. Meanwhile, our latest consensus estimate is calling for revenue of $79.97 billion, up 1.3% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $16.20 per share and a revenue of $254.85 billion, demonstrating changes of +10.28% and +5.18%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Costco. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% lower. Costco is currently a Zacks Rank #3 (Hold).
Digging into valuation, Costco currently has a Forward P/E ratio of 49.49. This indicates a premium in contrast to its industry's Forward P/E of 20.26.
One should further note that COST currently holds a PEG ratio of 5.31. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 2.39 based on yesterday's closing prices.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 40, this industry ranks in the top 16% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Costco (COST) Beats Stock Market Upswing: What Investors Need to Know
The latest trading session saw Costco (COST - Free Report) ending at $816.88, denoting a +1.88% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily gain of 1.04%. Meanwhile, the Dow gained 0.76%, and the Nasdaq, a tech-heavy index, added 1.03%.
Shares of the warehouse club operator have depreciated by 8.97% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 8.36% and the S&P 500's loss of 6.74%.
The upcoming earnings release of Costco will be of great interest to investors. The company's earnings report is expected on September 26, 2024. In that report, analysts expect Costco to post earnings of $5.02 per share. This would mark year-over-year growth of 3.29%. Meanwhile, our latest consensus estimate is calling for revenue of $79.97 billion, up 1.3% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $16.20 per share and a revenue of $254.85 billion, demonstrating changes of +10.28% and +5.18%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Costco. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% lower. Costco is currently a Zacks Rank #3 (Hold).
Digging into valuation, Costco currently has a Forward P/E ratio of 49.49. This indicates a premium in contrast to its industry's Forward P/E of 20.26.
One should further note that COST currently holds a PEG ratio of 5.31. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 2.39 based on yesterday's closing prices.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 40, this industry ranks in the top 16% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.