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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 one of 222 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #3 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

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).

Over the past 90 days, the Zacks Consensus Estimate for COST's full-year earnings has moved 0.84% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, COST has returned 44.44% so far this year. Meanwhile, stocks in the Retail-Wholesale group have gained about 25.88% on average. This means that Costco Wholesale is outperforming the sector as a whole this year.

Looking more specifically, COST belongs to the Retail - Discount Stores industry, a group that includes 10 individual stocks and currently sits at #82 in the Zacks Industry Rank. Stocks in this group have gained about 46.57% so far this year, so COST is slightly underperforming its industry this group 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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