Costco (COST) Surpasses Market Returns: Some Facts Worth Knowing

Group 1: Stock Performance - Costco's stock closed at $1,061.92, increasing by 1.73$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$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]