In the latest trading session, Costco (COST) closed at $1,001.05, marking a +1.19% move from the previous day. This move lagged the S&P 500's daily gain of 2.05%. Meanwhile, the Dow experienced a rise of 2.54%, and the technology-dominated Nasdaq saw an increase of 2.27%.
Shares of the warehouse club operator have appreciated by 8.08% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 1.28%, and the S&P 500's loss of 1.49%.
The investment community will be paying close attention to the earnings performance of Costco in its upcoming release. The company is slated to reveal its earnings on March 5, 2026. The company's upcoming EPS is projected at $4.52, signifying a 12.44% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $69.06 billion, showing a 8.38% escalation compared to the year-ago quarter.
COST's full-year Zacks Consensus Estimates are calling for earnings of $20.16 per share and revenue of $296.61 billion. These results would represent year-over-year changes of +12.06% and +7.77%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Costco. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.32% upward. Right now, Costco possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Costco has a Forward P/E ratio of 49.08 right now. This represents a premium compared to its industry average Forward P/E of 26.58.
One should further note that COST currently holds a PEG ratio of 5.91. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Discount Stores industry currently had an average PEG ratio of 2.97 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 41, this industry ranks in the top 17% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Costco Wholesale Corporation (COST): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
