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Costco (COST) Stock Slides as Market Rises: Facts to Know Before You Trade

The most recent trading session ended with Costco (COST) standing at $717.47, reflecting a -0.11% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.03% gain on the day. On the other hand, the Dow registered a gain of 0.41%, and the technology-centric Nasdaq increased by 0.12%.

The warehouse club operator's stock has dropped by 1.81% in the past month, falling short of the Retail-Wholesale sector's loss of 1.25% and the S&P 500's loss of 0.9%.

Analysts and investors alike will be keeping a close eye on the performance of Costco in its upcoming earnings disclosure. The company's earnings report is set to go public on May 30, 2024. On that day, Costco is projected to report earnings of $3.70 per share, which would represent year-over-year growth of 7.87%. Alongside, our most recent consensus estimate is anticipating revenue of $57.97 billion, indicating an 8.06% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $16.01 per share and a revenue of $253.07 billion, representing changes of +8.99% and +4.45%, respectively, from the prior year.

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Investors should also note any recent changes to analyst estimates for Costco. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.35% increase. Right now, Costco possesses a Zacks Rank of #3 (Hold).

Investors should also note Costco's current valuation metrics, including its Forward P/E ratio of 44.87. This indicates a premium in contrast to its industry's Forward P/E of 21.29.

We can also see that COST currently has a PEG ratio of 4.73. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Discount Stores industry currently had an average PEG ratio of 1.9 as of yesterday's close.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 49, finds itself in the top 20% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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Zacks Investment Research