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Why the Market Dipped But Costco (COST) Gained Today
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The most recent trading session ended with Costco (COST - Free Report) standing at $584.30, reflecting a +0.6% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily loss of 0.2%. Elsewhere, the Dow saw a downswing of 0.18%, while the tech-heavy Nasdaq depreciated by 0.59%.
The warehouse club operator's stock has climbed by 5.16% in the past month, falling short of the Retail-Wholesale sector's gain of 9.38% and the S&P 500's gain of 7.87%.
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 December 14, 2023. The company is forecasted to report an EPS of $3.43, showcasing a 10.65% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $57.69 billion, showing a 5.98% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.71 per share and a revenue of $252.72 billion, indicating changes of +6.94% and +4.31%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Costco. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.13% lower. As of now, Costco holds a Zacks Rank of #3 (Hold).
In the context of valuation, Costco is at present trading with a Forward P/E ratio of 36.98. Its industry sports an average Forward P/E of 23.91, so one might conclude that Costco is trading at a premium comparatively.
We can also see that COST currently has a PEG ratio of 4.32. 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. COST's industry had an average PEG ratio of 2.12 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 38% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Why the Market Dipped But Costco (COST) Gained Today
The most recent trading session ended with Costco (COST - Free Report) standing at $584.30, reflecting a +0.6% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily loss of 0.2%. Elsewhere, the Dow saw a downswing of 0.18%, while the tech-heavy Nasdaq depreciated by 0.59%.
The warehouse club operator's stock has climbed by 5.16% in the past month, falling short of the Retail-Wholesale sector's gain of 9.38% and the S&P 500's gain of 7.87%.
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 December 14, 2023. The company is forecasted to report an EPS of $3.43, showcasing a 10.65% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $57.69 billion, showing a 5.98% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.71 per share and a revenue of $252.72 billion, indicating changes of +6.94% and +4.31%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Costco. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.13% lower. As of now, Costco holds a Zacks Rank of #3 (Hold).
In the context of valuation, Costco is at present trading with a Forward P/E ratio of 36.98. Its industry sports an average Forward P/E of 23.91, so one might conclude that Costco is trading at a premium comparatively.
We can also see that COST currently has a PEG ratio of 4.32. 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. COST's industry had an average PEG ratio of 2.12 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 38% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.