In the latest trading session, Costco (COST) closed at $364.98, marking a +0.86% move from the previous day. This change outpaced the S&P 500’s 0.15% loss on the day. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, lost 0.07%.
Wall Street will be looking for positivity from COST as it approaches its next earnings report date. On that day, COST is projected to report earnings of $2.37 per share, which would represent year-over-year growth of 12.86%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $43.53 billion, up 11.41% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.95 per share and revenue of $184.12 billion, which would represent changes of +12.43% and +10.41%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for COST. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.15% higher. COST is currently a Zacks Rank #3 (Hold).
Investors should also note COST‘s current valuation metrics, including its Forward P/E ratio of 36.42. This represents a premium compared to its industry’s average Forward P/E of 21.07.
Investors should also note that COST has a PEG ratio of 4.17 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. COST‘s industry had an average PEG ratio of 2.48 as of yesterday’s close.
The Retail – Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 111, which puts it in the top 44% of all 250+ industries.
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.
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Costco Wholesale Corporation (COST) : Free Stock Analysis Report
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