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Costco (COST) closed the most recent trading day at $477.23, moving +1.59% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.3%.
Heading into today, shares of the warehouse club operator had gained 3.86% over the past month, outpacing the Retail-Wholesale sector's gain of 2.41% and lagging the S&P 500's gain of 4.28% in that time.
Wall Street will be looking for positivity from COST as it approaches its next earnings report date. The company is expected to report EPS of $2.52, up 10.04% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $47.75 billion, up 10.52% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.90 per share and revenue of $211.93 billion. These totals would mark changes of +7.4% and +8.17%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for COST. 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 company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 2.79% higher within the past month. COST is currently a Zacks Rank #2 (Buy).
In terms of valuation, COST is currently trading at a Forward P/E ratio of 39.49. For comparison, its industry has an average Forward P/E of 21.22, which means COST is trading at a premium to the group.
It is also worth noting that COST currently has a PEG ratio of 4.61. 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 2.04 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 179, which puts it in the bottom 30% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Costco Wholesale Corporation (COST) : Free Stock Analysis Report
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