Costco (COST) closed the most recent trading day at $994.57, moving +1.4% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.24%. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq decreased by 0.67%.
Prior to today's trading, shares of the warehouse club operator had gained 4.17% outpaced the Retail-Wholesale sector's gain of 3.1% and the S&P 500's gain of 1.95%.
Analysts and investors alike will be keeping a close eye on the performance of Costco in its upcoming earnings disclosure. The company's earnings report is set to go public on September 25, 2025. The company is predicted to post an EPS of $5.8, indicating a 12.62% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $85.93 billion, up 7.82% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $17.97 per share and a revenue of $274.97 billion, signifying shifts of +11.55% and +8.06%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications 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 business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Costco holds a Zacks Rank of #4 (Sell).
Looking at its valuation, Costco is holding a Forward P/E ratio of 54.6. Its industry sports an average Forward P/E of 23.07, so one might conclude that Costco is trading at a premium comparatively.
It's also important to note that COST currently trades at a PEG ratio of 6.1. 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 2.84 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 192, this industry ranks in the bottom 23% of all industries, numbering over 250.
The Zacks Industry Rank is ordered 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Costco Wholesale Corporation (COST): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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