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

Zacks Equity Research
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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 one of 224 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #3 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. COST is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for COST's full-year earnings has moved 1.90% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, COST has returned 26.09% so far this year. Meanwhile, stocks in the Retail-Wholesale group have gained about 14.71% on average. This shows that Costco Wholesale is outperforming its peers so far this year.

Looking more specifically, COST belongs to the Retail - Discount Stores industry, which includes 10 individual stocks and currently sits at #44 in the Zacks Industry Rank. On average, stocks in this group have gained 22.51% this year, meaning that COST is performing better in terms of year-to-date returns.

Investors with an interest in Retail-Wholesale stocks should continue to track COST. The stock will be looking to continue its solid performance.


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