Costco(COST)

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Costco (COST) Surpasses Market Returns: Some Facts Worth Knowing
ZACKS· 2025-02-10 23:46
Group 1: Stock Performance - Costco's stock closed at $1,061.92, increasing by 1.73% from the previous trading session, outperforming the S&P 500's gain of 0.67% [1] - Over the past month, Costco shares have gained 11.41%, surpassing the Retail-Wholesale sector's gain of 7.15% and the S&P 500's gain of 2.07% [1] Group 2: Upcoming Earnings - Costco's earnings report is expected on March 6, 2025, with projected earnings per share (EPS) of $4.08, reflecting a 9.97% increase from the same quarter last year [2] - Revenue is expected to reach $63.13 billion, showing an 8.02% increase compared to the year-ago quarter [2] Group 3: Full-Year Estimates - The full-year Zacks Consensus Estimates for Costco are earnings of $18.03 per share and revenue of $273.15 billion, representing year-over-year changes of +11.92% and +7.35%, respectively [3] - Recent changes to analyst estimates indicate evolving short-term business trends, with positive revisions reflecting analyst optimism about the company's business and profitability [3] Group 4: Zacks Rank and Performance - The Zacks Rank system, which evaluates estimate changes, currently ranks Costco at 2 (Buy), with a 0.16% rise in the Zacks Consensus EPS estimate over the past month [5] - Historically, 1 ranked stocks in the Zacks Rank system have yielded an average annual return of +25% since 1988 [5] Group 5: Valuation Metrics - Costco is trading at a Forward P/E ratio of 57.9, significantly higher than the industry average of 19.36, indicating a premium valuation [6] - The company has a PEG ratio of 6.21, compared to the Retail - Discount Stores industry's average PEG ratio of 2.08 [7] Group 6: Industry Ranking - The Retail - Discount Stores industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 66, placing it in the top 27% of all industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]
Costco's Stellar Comparable Sales Growth Continues in January
ZACKS· 2025-02-10 15:40
Costco Wholesale Corporation (COST) continued with its decent comparable sales growth in January. The robust performance, driven by notable gains across key regions, reflects Costco’s ability to attract value-conscious shoppers with its competitive pricing and high-quality offerings. As consumer spending patterns evolve, the company’s strong sales growth reaffirms its operational excellence and adaptability in a dynamic retail landscape.Decoding COST’s January CompsCOST’s comparable sales for January illust ...
Is Costco Wholesale Stock a Buy, Sell, or Hold in 2025?
The Motley Fool· 2025-02-10 14:45
Bulk-buying, bargain-hunting shoppers propelled Costco Wholesale (COST 0.64%) to a record-breaking 2024 for sales and earnings. The discount retailer is benefiting from a resilient economic backdrop while capitalizing on an ongoing e-commerce expansion. Its latest update highlighted further growth momentum to kick off 2025.With the stock up 47% over the past year and currently trading at an all-time high, can the rally keep going? Let's discuss what to do with shares of Costco Wholesale.The case to buy or h ...
Costco Is a Growth Stock. January Sales Prove It.
The Motley Fool· 2025-02-08 11:03
Despite its entrenched position in the U.S. retail sector, this powerful discount chain still has the characteristics of a growth stock.Some investors might automatically assume Costco (COST -0.57%) is an established, slow-growing company. They would be right on one count, but wrong on the other. It is certainly an established leader. But it's not slow-growing. In fact, the membership-based wholesale retailer's earnings per share grew by a high-teens percentage in its fiscal 2024, which ended Sept. 1. Furth ...
1 Overvalued Stock I Can't Wait to Buy at a Discount
The Motley Fool· 2025-02-07 12:17
The S&P 500 has been on a phenomenal run. After soaring 24% in 2023, it climbed 23% last year. Today, the benchmark index trades in record territory.Naturally, investors are probably wondering if there are any deals in today's market as many of the best businesses in the world trade at expensive valuations. That's why it's a good idea to be patient and wait for the right opportunity. There's one high-quality company that I've been following for some time. The stock, which I believe is overvalued, has soared ...
Costco Wholesale Corporation (COST) Hit a 52 Week High, Can the Run Continue?
ZACKS· 2025-02-06 15:16
Core Viewpoint - Costco's shares have increased by 12.5% over the past month, reaching a new 52-week high of $1043.09, and have gained 13.8% year-to-date, outperforming the Zacks Retail-Wholesale sector and the Zacks Retail - Discount Stores industry [1]. Performance Drivers - The stock has consistently exceeded earnings expectations, not missing the consensus estimate in the last four quarters. In the latest earnings report on December 12, 2024, Costco reported EPS of $3.82, surpassing the consensus estimate of $3.79, and beat the revenue estimate by 0.17% [2]. Earnings Projections - For the current fiscal year, Costco is projected to achieve earnings of $18.01 per share on revenues of $272.79 billion, reflecting an 11.79% increase in EPS and a 7.21% increase in revenues. For the next fiscal year, earnings are expected to rise to $19.66 per share on $291.08 billion in revenues, indicating year-over-year changes of 9.18% and 6.7%, respectively [3]. Valuation Metrics - Costco's current valuation shows a Price-to-Earnings (P/E) ratio of 57.9X for the current fiscal year, significantly higher than the peer industry average of 19.9X. The trailing cash flow basis shows a ratio of 49.2X compared to the peer group's average of 17.3X, and the PEG ratio stands at 6.22, indicating that the stock may not be in the top tier from a value perspective [7]. Zacks Rank - Costco holds a Zacks Rank of 2 (Buy) due to rising earnings estimates. The company meets the criteria for selection, as it has a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, suggesting potential for further share price appreciation in the near term [8].
Peloton posts better than expected holiday sales thanks in part to Costco
CNBC· 2025-02-06 12:17
Peloton told investors Thursday it still has a "steep hill to climb" to achieve profitable growth under its new CEO, but the connected fitness company beat holiday sales expectations, thanks in part to its partnership with Costco. The bike maker posted mixed fiscal second quarter results, as it topped Wall Street's sales estimates but lost more than expected as it continued its efforts to make its costly hardware business more profitable.The bike maker also cut costs in three key areas that it has faced cri ...
Is Costco Stock a No-Brainer Buy for 2025?
The Motley Fool· 2025-02-06 08:41
Costco Wholesale (COST 2.06%) has emerged as one of the world's most successful retailers. Its strategy of selling high-quality bulk goods at competitive prices and razor-thin margins has built the company a loyal customer base.However, Costco's focus on offering the lowest possible prices does not necessarily apply to its stock. Thus, investors need to take a closer look at the company and its financials to know whether Costco will be an obvious buy in 2025.Costco's businessFew can argue with the success o ...
Costco Wholesale Corporation Reports January Sales Results
GlobeNewswire· 2025-02-05 21:15
ISSAQUAH, Wash., Feb. 05, 2025 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today reported net sales of $19.51 billion for the retail month of January, the four weeks ended February 2, 2025, an increase of 9.2 percent from $17.87 billion last year. Net sales for the first 22 weeks were $113.55 billion, an increase of 8.2 percent from $104.94 billion last year. Comparable sales for the periods ended February 2, 2025, were as follows: 4 Weeks 22 WeeksU.S.9.2% 6. ...
Costco Stock Breaks 52-Week Record: Buy, Hold or Take Profits?
ZACKS· 2025-02-04 15:30
Costco Wholesale Corporation (COST) just hit a fresh 52-week high, rewarding investors with impressive gains. But with the stock soaring, a key question arises — should you cash in now or stay invested? Costco’s strong fundamentals, including strong membership growth and pricing power, have fueled its rise, but is there still room to run? Let’s dive into the key factors driving this rally and whether it’s time to take profits.The stock reached a new 52-week peak of $1,009.61 yesterday, a significant milesto ...