Costco (COST) Stock Sinks As Market Gains: Here's Why

Costco (COST) closed the most recent trading day at $958.67, moving -0.68% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.92% for the day. Elsewhere, the Dow gained 0.31%, while the tech-heavy Nasdaq added 2.03%.The the stock of warehouse club operator has risen by 4.67% in the past month, lagging the Retail-Wholesale sector's gain of 4.85% and overreaching the S&P 500's gain of 0.81%.The upcoming earnings release of Costco will be of great interest to investors. The company's upcoming EPS is projected at $4.07, signifying a 9.7% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $62.89 billion, up 7.61% from the prior-year quarter.Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $18.01 per share and revenue of $272.79 billion. These totals would mark changes of +11.79% and +7.21%, respectively, from last year.Investors should also take note of any recent adjustments to analyst estimates for Costco. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.25% higher. Right now, Costco possesses a Zacks Rank of #2 (Buy).With respect to valuation, Costco is currently being traded at a Forward P/E ratio of 53.6. This represents a premium compared to its industry's average Forward P/E of 20.62.It is also worth noting that COST currently has a PEG ratio of 5.76. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Discount Stores industry had an average PEG ratio of 2.39 as trading concluded yesterday.The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% 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.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks