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Is Costco Wholesale (COST) Outperforming Other Retail-Wholesale Stocks This Year?

Zacks Equity Research

Investors focused on the Retail-Wholesale space have likely heard of Costco Wholesale (COST), but is the stock performing well in comparison to the rest of its sector peers? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.

Costco Wholesale is a member of the Retail-Wholesale sector. This group includes 225 individual stocks and currently holds a Zacks Sector Rank of #8. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. COST is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for COST's full-year earnings has moved 3.37% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, COST has moved about 19.14% on a year-to-date basis. In comparison, Retail-Wholesale companies have returned an average of 18.58%. This shows that Costco Wholesale is outperforming its peers so far this year.

To break things down more, COST belongs to the Retail - Discount Stores industry, a group that includes 10 individual companies and currently sits at #59 in the Zacks Industry Rank. Stocks in this group have gained about 18.26% so far this year, so COST is performing better this group in terms of year-to-date returns.

Investors in the Retail-Wholesale sector will want to keep a close eye on COST as it attempts to continue its solid performance.


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