Costco (COST) closed the most recent trading day at $998.47, moving -3.25% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.11% for the day. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq added 0.35%.
Prior to today's trading, shares of the warehouse club operator had gained 2.86% outpaced the Retail-Wholesale sector's gain of 1.33% and the S&P 500's gain of 0.51%.
The investment community will be closely monitoring the performance of Costco in its forthcoming earnings report. In that report, analysts expect Costco to post earnings of $4.89 per share. This would mark year-over-year growth of 14.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $68.68 billion, up 8.67% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $20.32 per share and a revenue of $298.02 billion, demonstrating changes of +12.95% and +8.28%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Costco. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 shifted 0.16% upward. Right now, Costco possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Costco is at present trading with a Forward P/E ratio of 50.78. This indicates a premium in contrast to its industry's Forward P/E of 30.03.
It's also important to note that COST currently trades at a PEG ratio of 5.1. 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. The Retail - Discount Stores industry had an average PEG ratio of 3.08 as trading concluded yesterday.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 76, finds itself in the top 32% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Costco Wholesale Corporation (COST): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).