Costco (COST) Exceeds Market Returns: Some Facts to Consider

Costco (COST) ended the recent trading session at $999.89, demonstrating a +1.28% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 1.2%. Elsewhere, the Dow saw an upswing of 1.79%, while the tech-heavy Nasdaq appreciated by 1.52%. Coming into today, shares of the warehouse club operator had gained 1.28% in the past month. In that same time, the Retail-Wholesale sector gained 6.55%, while the S&P 500 gained 5.15%. 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 28, 2026. In that report, analysts expect Costco to post earnings of $4.9 per share. This would mark year-over-year growth of 14.49%. Our most recent consensus estimate is calling for quarterly revenue of $68.82 billion, up 8.88% from the year-ago period. For the full year, the Zacks Consensus Estimates project earnings of $20.32 per share and a revenue of $298.47 billion, demonstrating changes of +12.95% and +8.44%, respectively, from the preceding year. 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 business outlook. Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 0.07% increase. As of now, Costco holds a Zacks Rank of #3 (Hold). From a valuation perspective, Costco is currently exchanging hands at a Forward P/E ratio of 48.58. This denotes a premium relative to the industry average Forward P/E of 29.93. One should further note that COST currently holds a PEG ratio of 4.86. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Retail - Discount Stores industry held an average PEG ratio of 3.02. The Retail - Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 69, this industry ranks in the top 29% of all industries, numbering over 250. The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions. #1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks