Costco (COST) Increases Despite Market Slip: Here's What You Need to Know

Zacks Rank and Stock Performance - The Zacks Rank system has a strong track record, with 1 ranked stocks delivering an average annual return of +25% since 1988 [1] - Costco currently holds a Zacks Rank of 3 (Hold) [1] - Costco's stock closed at $936 94, up +1 03% from the previous session, outperforming the S&P 500's daily loss of 1 54% [2] - Over the past month, Costco shares lost 6 17%, underperforming the Retail-Wholesale sector's loss of 4 27% and the S&P 500's loss of 2 2% [2] Earnings and Revenue Estimates - Costco is expected to post an EPS of$ 4 05 in its upcoming earnings release, representing a 9 16% growth compared to the same quarter last year [3] - Revenue is anticipated to be $62 74 billion, a 7 36% increase from the same quarter last year [3] - For the full year, earnings are projected at$ 18 01 per share, an 11 79% increase, and revenue at $272 46 billion, a 7 08% increase from the prior year [4] Analyst Estimates and Valuation - Recent upward revisions in analyst estimates reflect positivity towards Costco's business operations and profit generation [5] - Estimate changes are directly correlated with near-term stock prices, and the Zacks Rank system incorporates these changes [6] - Costco has a Forward P/E ratio of 51 5, significantly higher than the industry average of 21 37, indicating a premium valuation [7] - Costco's PEG ratio is 5 54, compared to the industry average of 2 29, suggesting a higher valuation relative to expected earnings growth [8] Industry Overview - The Retail - Discount Stores industry is part of the Retail-Wholesale sector and holds a Zacks Industry Rank of 177, placing it in the bottom 30% of all industries [9] - Industries in the top 50% of the Zacks Industry Rank outperform the bottom half by a factor of 2 to 1 [9]