In the latest trading session, Costco (COST) closed at $299.18, marking a +0.8% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.12%. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq gained 0.02%.
Prior to today's trading, shares of the warehouse club operator had gained 1.16% over the past month. This has lagged the Retail-Wholesale sector's gain of 2.92% and the S&P 500's gain of 4.42% in that time.
Investors will be hoping for strength from COST as it approaches its next earnings release. The company is expected to report EPS of $1.71, up 6.21% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $37.36 billion, up 6.54% from the year-ago period.
COST's full-year Zacks Consensus Estimates are calling for earnings of $8.61 per share and revenue of $162.81 billion. These results would represent year-over-year changes of +5.13% and +6.62%, respectively.
Any recent changes to analyst estimates for COST should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. The Zacks Consensus EPS estimate has moved 0.15% higher within the past month. COST is currently a Zacks Rank #2 (Buy).
Investors should also note COST's current valuation metrics, including its Forward P/E ratio of 34.49. Its industry sports an average Forward P/E of 23.21, so we one might conclude that COST is trading at a premium comparatively.
Meanwhile, COST's PEG ratio is currently 4.06. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Discount Stores was holding an average PEG ratio of 2.36 at yesterday's closing price.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 25, which puts it in the top 10% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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 Report
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