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Here's Why Costco (COST) is a Strong Value Stock

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

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Costco (COST)

Based in Issaquah, Washington, Costco Wholesale Corporation sells high volumes of foods and general merchandise (including household products and appliances) at discounted prices through membership warehouses. It is one of the largest warehouse club operators in the United States. The company also operates e-commerce sites in the United States, Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan and Australia.

COST sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of A. Compared to the Retail - Discount Stores industry's P/E of 20.6X, shares of Costco are trading at a forward P/E of 49.5X. COST also has a PEG Ratio of 5.2, a Price/Cash Flow ratio of 40.8X, and a Price/Sales ratio of 1.4X.

Many value investors pay close attention to a company's earnings as well. For COST, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.09 to $16.04 per share for 2024. Per share COST boasts an average earnings surprise of 2.6%.

Investors should take the time to consider COST for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.

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Costco Wholesale Corporation (COST) : Free Stock Analysis Report

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Zacks Investment Research