Costco (COST) exceeds stock market earnings: what you need to know
In the last trading session, Costco (COST) closed at $ 444.30, marking a movement of + 0.29% from the previous day. This move topped the S&P 500 daily gain by 0.25%.
Prior to today’s trading, shares in the warehouse club operator had gained 8.84% over the past month. This exceeded the 3.19% loss of the retail and wholesale sector and the 1.65% gain of the S&P 500 during this period.
Investors are hopeful that COST will gain strength as it approaches its next earnings release, which is expected to be September 23, 2021. On that day, COST is expected to report earnings of $ 3.44 per share, which would represent growth. from one year to the next. by 9.9%. Meanwhile, our latest consensus estimate projects revenue of $ 61.09 billion, up 14.43% from the previous year’s quarter.
For the full year, our Zacks consensus estimates project earnings of $ 10.55 per share and revenue of $ 194.01 billion, which would represent changes of + 19.21% and + 16.34%, respectively, over the previous year.
It’s also important to note the recent changes to analyst estimates for COST. These revisions generally reflect the latest short-term business trends, which can change frequently. With this in mind, we can take positive estimate revisions as a sign of optimism about the company’s business prospects.
Based on our research, we believe that these estimate revisions are directly related to stock movements close to the team. We have developed the Zacks Rank to capitalize on this phenomenon. Our system takes these rating changes into account and provides a clear and actionable scoring model.
Ranging from # 1 (strong buy) to # 5 (strong sell), the Zacks Rank system has a proven and externally audited track record of outperformance, with # 1 stocks returning an average of + 25% per year since 1988. Over the past month, Zacks Consensus EPS estimate has risen 0.59%. COST currently has a Zacks rank of # 3 (Hold).
Digging into the valuation, COST currently has a forward P / E ratio of 42.01. This valuation marks a premium over its sector’s average forward P / E of 25.52.
Additionally, it should be mentioned that COST has a PEG ratio of 4.6. This popular metric is similar to the well-known P / E ratio, except that the PEG ratio also takes into account the expected rate of earnings growth of the company. Retail – Discount Stores currently had an average PEG ratio of 2.07 at yesterday’s close.
The Retail Trade – Discount Stores segment is part of the Retail-Wholesale segment. This industry currently has a Zacks Industry Rank of 184, which places it in the lowest 28% of all 250+ industries.
The Zacks Industry Rank includes is ranked from best to worst in terms of the average Zacks Rank of individual companies in each of these industries. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and more, at Zacks.com.
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Costco Wholesale Corporation (COST): Free Inventory Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.