In the latest trading session, Costco (COST) closed at $287.83, marking a -1.57% move from the previous day. This move lagged the S&P 500's daily of 0%. Meanwhile, the Dow lost 0.19%, and the Nasdaq, a tech-heavy index, added 0.07%.
Heading into today, shares of the warehouse club operator had gained 6.08% over the past month, outpacing the Retail-Wholesale sector's gain of 4.58% and the S&P 500's gain of 4.25% in that time.
Wall Street will be looking for positivity from COST as it approaches its next earnings report date. This is expected to be October 3, 2019. On that day, COST is projected to report earnings of $2.54 per share, which would represent year-over-year growth of 7.63%. Meanwhile, our latest consensus estimate is calling for revenue of $47.26 billion, up 6.41% from the prior-year quarter.
Investors should also note any 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. 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.
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 0.06% higher within the past month. COST currently has a Zacks Rank of #3 (Hold).
Investors should also note COST's current valuation metrics, including its Forward P/E ratio of 34.36. This represents a premium compared to its industry's average Forward P/E of 22.99.
Investors should also note that COST has a PEG ratio of 3.87 right now. 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. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 2.32 based on yesterday's closing prices.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 41, putting it in the top 17% 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.
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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