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Costco (COST) closed the most recent trading day at $452.34, moving -0.11% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.71%.
Prior to today's trading, shares of the warehouse club operator had gained 9.35% over the past month. This has outpaced the Retail-Wholesale sector's loss of 2.25% and the S&P 500's gain of 3.63% in that time.
Investors will be hoping for strength from COST as it approaches its next earnings release, which is expected to be September 23, 2021. On that day, COST is projected to report earnings of $3.44 per share, which would represent year-over-year growth of 9.9%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $61.09 billion, up 14.43% from the year-ago period.
COST's full-year Zacks Consensus Estimates are calling for earnings of $10.55 per share and revenue of $194.01 billion. These results would represent year-over-year changes of +19.21% and +16.34%, respectively.
It is also important to note the recent changes to analyst estimates for COST. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.59% higher within the past month. COST is currently a Zacks Rank #3 (Hold).
Digging into valuation, COST currently has a Forward P/E ratio of 42.94. For comparison, its industry has an average Forward P/E of 25.11, which means COST is trading at a premium to the group.
We can also see that COST currently has a PEG ratio of 4.7. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. COST's industry had an average PEG ratio of 2.06 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 62, putting it in the top 25% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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