The latest trading session ended with Costco (COST) trading at $892.51, representing a +1.51% change from the previous trading day’s close. The stock’s performance outperformed the S&P 500’s daily loss of 0.32%. Meanwhile, the Dow gained 0.16% and the Nasdaq, a tech-heavy index, lost 0.85%.

The warehouse club operator’s stock has risen 7.54% over the past month, outpacing the Retail-Wholesale sector’s gain of 2.72% and the S&P 500’s gain of 1.52%.

Analysts and investors will be keeping a close eye on Costco’s performance on its upcoming earnings release. The company’s earnings report is scheduled to be released on September 26, 2024. On that day, Costco is expected to report earnings of $5.02 per share, representing year-over-year growth of 3.29%. Meanwhile, our current consensus estimate is projecting revenue of $80.07 billion, representing growth of 1.44% from the corresponding quarter last year.

For the year, the Zacks Consensus Estimates are projecting earnings of $16.27 per share and revenue of $254.55 billion, representing year-over-year variations of +10.76% and +5.06%, respectively.

Investors should also pay attention to any recent revisions to analyst estimates for Costco. These recent changes typically reflect the evolving nature of near-term business trends. With this in mind, we can view positive estimate revisions as a sign of optimism about the company’s business prospects.

Research shows that these estimate changes are directly correlated with near-term stock price momentum. To capitalize on this, we have developed the Zacks Rank, an exclusive model that takes these estimate changes into account and provides an operating rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of success. #1-ranked stocks have delivered an average annual return of +25% since 1988. The Zacks Consensus Estimate for earnings per share has moved 0.1% higher within the past month. Currently, Costco has a Zacks Rank of #3 (Hold).

Looking at valuation, Costco is currently trading at a P/E ratio of 54.03, which represents a premium to the industry P/E ratio of 22.43.

It is also important to note that COST currently has a PEG ratio of 5.79. The PEG ratio is similar to the commonly used P/E ratio, but it also takes into account the company’s expected earnings growth rate. Stocks in retail discount stores have, on average, a PEG ratio of 2.36 based on yesterday’s closing prices.

The story continues

The Retail – Discount Stores industry is part of the Retail and Wholesale Trade sector. This industry, which currently has a Zacks Industry Rank of 179, ranks in the bottom 30% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within those groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

Don’t forget to use Zacks.com to keep an eye on all of these and other stock-moving metrics in the coming trading sessions.

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Costco Wholesale Corporation (COST): Free Stock Analysis Report

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