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Costco (COST) Dips More Than Broader Markets: What You Should Know

Costco (COST) closed at $494.53 in the latest trading session, marking a -0.55% move from the prior day. This change lagged the S&P 500's 0.4% loss on the day. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq lost 0.18%.

Coming into today, shares of the warehouse club operator had lost 15.77% in the past month. In that same time, the Retail-Wholesale sector lost 15.28%, while the S&P 500 lost 9.39%.

Wall Street will be looking for positivity from Costco as it approaches its next earnings report date. This is expected to be May 26, 2022. In that report, analysts expect Costco to post earnings of $3.04 per share. This would mark year-over-year growth of 10.55%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $51.76 billion, up 14.33% from the year-ago period.

COST's full-year Zacks Consensus Estimates are calling for earnings of $13.07 per share and revenue of $223.41 billion. These results would represent year-over-year changes of +17.96% and +14.03%, respectively.

Any recent changes to analyst estimates for Costco should also be noted by investors. 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. 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 moved 0.45% higher. Costco is currently sporting a Zacks Rank of #2 (Buy).

Digging into valuation, Costco currently has a Forward P/E ratio of 38.06. This valuation marks a premium compared to its industry's average Forward P/E of 19.19.

It is also worth noting that COST currently has a PEG ratio of 4.19. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 1.75 based on yesterday's closing prices.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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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Costco Wholesale Corporation (COST) : Free Stock Analysis Report
 
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