Yahoo Finance Costco (COST) Surges 7.3%: Is This an Indication of Further Gains?
Costco COST shares rallied 7.3% in the last trading session to close at $482.87. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 6.5% loss over the past four weeks.
Shares of Costco jumped following stellar sales in the month of December. Markedly, the Christmas holiday period turned out to be a blissful one for the retailer. Net sales increased 7% to $23.80 billion for the month under review, while comparable sales jumped 5.5%.
This warehouse club operator is expected to post quarterly earnings of $3.20 per share in its upcoming report, which represents a year-over-year change of +9.6%. Revenues are expected to be $55.6 billion, up 7.1% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Costco, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on COST going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Costco is a member of the Zacks Retail - Discount Stores industry. One other stock in the same industry, Burlington Stores BURL, finished the last trading session 1.4% higher at $223.91. BURL has returned 11% over the past month.
Burlington Stores' consensus EPS estimate for the upcoming report has changed -0.1% over the past month to $2.71. Compared to the company's year-ago EPS, this represents a change of +7.1%. Burlington Stores currently boasts a Zacks Rank of #3 (Hold).
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Costco Wholesale Corporation (COST) : Free Stock Analysis Report
Burlington Stores, Inc. (BURL) : Free Stock Analysis Report
