In the latest trading session, Costco (COST) closed at $530.92, marking a -0.51% move from the previous day. This change was narrower than the S&P 500's 1.54% loss on the day. Meanwhile, the Dow lost 1.45%, and the Nasdaq, a tech-heavy index, lost 0.16%.
Coming into today, shares of the warehouse club operator had gained 4.46% in the past month. In that same time, the Retail-Wholesale sector gained 0.95%, while the S&P 500 gained 4.54%.
Costco will be looking to display strength as it nears its next earnings release, which is expected to be December 8, 2022. The company is expected to report EPS of $3.15, up 6.06% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $55.06 billion, up 9.32% from the year-ago period.
COST's full-year Zacks Consensus Estimates are calling for earnings of $14.45 per share and revenue of $245.81 billion. These results would represent year-over-year changes of +9.97% and +8.31%, respectively.
Investors might also notice recent changes to analyst estimates for Costco. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 past month, the Zacks Consensus EPS estimate has moved 0.23% lower. Costco is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Costco's current valuation metrics, including its Forward P/E ratio of 36.92. This valuation marks a premium compared to its industry's average Forward P/E of 26.96.
Also, we should mention that COST has a PEG ratio of 3.6. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Discount Stores industry currently had an average PEG ratio of 2.53 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 48, which puts it in the top 20% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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