Costco (COST) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Group 1: Recent Performance - Costco's stock closed at $919.75, reflecting a -0.41% change from the previous day, underperforming compared to the S&P 500's -0.21% loss [1] - Over the past month, Costco shares have decreased by 4.27%, while the Retail-Wholesale sector and the S&P 500 lost 2.84% and 1.56%, respectively [1] Group 2: Upcoming Earnings - Costco is expected to report earnings of$ 4.07 per share, indicating a year-over-year growth of 9.7%, with projected revenue of $62.85 billion, a 7.55% increase from the same quarter last year [2] - For the full year, analysts anticipate earnings of$ 18.01 per share and revenue of $272.79 billion, representing changes of +11.79% and +7.21% from the previous year [3] Group 3: Analyst Estimates and Ratings - Recent changes in analyst estimates for Costco are crucial, as upward revisions indicate positive sentiment regarding the company's business operations [4] - The Zacks Rank system, which evaluates these estimate changes, currently ranks Costco as 2 (Buy), with a recent upward shift of 0.25% in the consensus EPS estimate [6] Group 4: Valuation Metrics - Costco has a Forward P/E ratio of 51.28, significantly higher than the industry average of 20.35, suggesting it is trading at a premium [7] - The company has a PEG ratio of 5.51, compared to the Retail - Discount Stores industry's average PEG ratio of 2.24, indicating a higher valuation relative to expected earnings growth [8] Group 5: Industry Context - The Retail - Discount Stores industry is part of the Retail-Wholesale sector, which holds a Zacks Industry Rank of 58, placing it in the top 24% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9]