Costco (COST) closed at $924.88 in the latest trading session, marking a +1.05% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.65% for the day. Elsewhere, the Dow saw an upswing of 0.48%, while the tech-heavy Nasdaq appreciated by 0.82%.
The warehouse club operator's stock has climbed by 3.49% in the past month, falling short of the Retail-Wholesale sector's gain of 4.29% and outpacing the S&P 500's gain of 1.15%.
The investment community will be closely monitoring the performance of Costco in its forthcoming earnings report. The company is forecasted to report an EPS of $4.49, showcasing a 11.69% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $68.88 billion, indicating a 8.1% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $20.09 per share and revenue of $296.08 billion, which would represent changes of +11.67% and +7.57%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Costco. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.48% higher. Costco is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Costco is presently trading at a Forward P/E ratio of 45.55. This represents a premium compared to its industry average Forward P/E of 29.33.
It's also important to note that COST currently trades at a PEG ratio of 5.48. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. COST's industry had an average PEG ratio of 3.55 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 40, positioning it in the top 17% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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