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Costco (COST) Rises Higher Than Market: Key Facts

In the latest market close, Costco (COST) reached $722.68, with a +1.87% movement compared to the previous day. The stock's change was more than the S&P 500's daily gain of 1.2%. Elsewhere, the Dow gained 0.69%, while the tech-heavy Nasdaq added 1.59%.

The warehouse club operator's stock has dropped by 2.12% in the past month, exceeding the Retail-Wholesale sector's loss of 3.47% and the S&P 500's loss of 4.16%.

Analysts and investors alike will be keeping a close eye on the performance of Costco in its upcoming earnings disclosure. The company's earnings report is set to go public on May 30, 2024. In that report, analysts expect Costco to post earnings of $3.69 per share. This would mark year-over-year growth of 7.58%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $57.97 billion, up 8.06% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $16.03 per share and revenue of $253.07 billion. These totals would mark changes of +9.12% and +4.45%, respectively, from last year.


Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Costco. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.36% higher. Costco currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Costco is currently trading at a Forward P/E ratio of 44.62. This expresses a premium compared to the average Forward P/E of 21.18 of its industry.

One should further note that COST currently holds a PEG ratio of 4.71. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Retail - Discount Stores industry was having an average PEG ratio of 1.9.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 34, putting it in the top 14% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions.

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Costco Wholesale Corporation (COST) : Free Stock Analysis Report

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