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Costco (COST) Surpasses Market Returns: Some Facts Worth Knowing
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In the latest close session, Costco (COST - Free Report) was up +2.01% at $1,087.61. This change outpaced the S&P 500's 1.31% gain on the day. Elsewhere, the Dow gained 0.49%, while the tech-heavy Nasdaq added 1.6%.
Heading into today, shares of the warehouse club operator had gained 11.68% over the past month, outpacing the Retail-Wholesale sector's gain of 6.69% and the S&P 500's loss of 3.66%.
Market participants will be closely following the financial results of Costco in its upcoming release. The company is predicted to post an EPS of $4.87, indicating a 12.21% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $74.29 billion, up 10.38% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $22.7 per share and a revenue of $329.02 billion, indicating changes of +11% and +8.53%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Costco. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.67% decrease. Costco is currently a Zacks Rank #3 (Hold).
With respect to valuation, Costco is currently being traded at a Forward P/E ratio of 46.97. This valuation marks a premium compared to its industry average Forward P/E of 21.31.
We can additionally observe that COST currently boasts a PEG ratio of 4.71. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Retail - Discount Stores industry stood at 1.98 at the close of the market yesterday.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 93, this industry ranks in the top 38% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
View the Zacks #1 Rank List
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Costco (COST) Surpasses Market Returns: Some Facts Worth Knowing
In the latest close session, Costco (COST - Free Report) was up +2.01% at $1,087.61. This change outpaced the S&P 500's 1.31% gain on the day. Elsewhere, the Dow gained 0.49%, while the tech-heavy Nasdaq added 1.6%.
Heading into today, shares of the warehouse club operator had gained 11.68% over the past month, outpacing the Retail-Wholesale sector's gain of 6.69% and the S&P 500's loss of 3.66%.
Market participants will be closely following the financial results of Costco in its upcoming release. The company is predicted to post an EPS of $4.87, indicating a 12.21% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $74.29 billion, up 10.38% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $22.7 per share and a revenue of $329.02 billion, indicating changes of +11% and +8.53%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Costco. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.67% decrease. Costco is currently a Zacks Rank #3 (Hold).
With respect to valuation, Costco is currently being traded at a Forward P/E ratio of 46.97. This valuation marks a premium compared to its industry average Forward P/E of 21.31.
We can additionally observe that COST currently boasts a PEG ratio of 4.71. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Retail - Discount Stores industry stood at 1.98 at the close of the market yesterday.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 93, this industry ranks in the top 38% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.