COST rises throughout the session after alertCostco, Inc. (COST) today experienced a Power Inflow, a significant event for those who follow where smart money goes and value order flow analytics in their trading decisions. Today, at 10:03 AM on May 5th, a significant trading signal occurred for Costco, Inc. (COST) as it demonstrated a Power Inflow at a price of $1006.24. This indicator is crucial for traders who want to know directionally where institutions and so-called "smart money" moves in the market. Th ...

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Core Viewpoint - Costco has been trending positively in the stock market, outperforming the S&P 500 and the discount retail industry, raising questions about its future stock performance [1] Earnings Estimate Revisions - The current quarter's earnings estimate for Costco is $4.25 per share, reflecting a year-over-year increase of +12.4% with a recent change of +0.5% in the consensus estimate [4] - For the current fiscal year, the consensus earnings estimate is $17.96, indicating a change of +11.5% from the previous year, with a slight change of +0.1% over the last 30 days [4] - The next fiscal year's consensus earnings estimate stands at $19.73, showing a change of +9.9% from the prior year, with no change in the estimate over the past month [5] Revenue Growth Forecast - Costco's consensus sales estimate for the current quarter is $63 billion, representing a year-over-year change of +7.7% [10] - The sales estimates for the current and next fiscal years are $274.3 billion and $292.89 billion, indicating changes of +7.8% and +6.8%, respectively [10] Last Reported Results and Surprise History - In the last reported quarter, Costco achieved revenues of $63.72 billion, a year-over-year increase of +9%, with an EPS of $4.02 compared to $3.71 a year ago [11] - The reported revenues exceeded the Zacks Consensus Estimate of $63.22 billion by +0.79%, while the EPS fell short by -1.71% [11] - Over the last four quarters, Costco surpassed consensus EPS estimates three times and revenue estimates two times [12] Valuation - Costco is graded D in the Zacks Value Style Score, indicating it is trading at a premium compared to its peers [16] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether Costco's stock is overvalued or undervalued [14][15] Bottom Line - The information presented may assist in evaluating the market interest surrounding Costco, with a Zacks Rank of 3 suggesting it may perform in line with the broader market in the near term [17]

Ross Stores (ROST) closed at $140.78 in the latest trading session, marking a +1.01% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.58%. Elsewhere, the Dow gained 0.75%, while the tech-heavy Nasdaq added 0.55%.Prior to today's trading, shares of the discount retailer had gained 9.06% over the past month. This has outpaced the Retail-Wholesale sector's loss of 0.19% and the S&P 500's loss of 0.84% in that time.Analysts and investors alike will be keeping a close eye on the performa ...

Core Viewpoint - Costco's stock performance has shown resilience, with a recent increase and positive earnings expectations, indicating a favorable outlook for the company in the retail sector [1][2][3]. Company Performance - Costco's stock closed at $991.70, reflecting a +1.34% increase, outperforming the S&P 500's gain of 0.58% [1]. - Over the past month, Costco shares have appreciated by 3.46%, contrasting with the Retail-Wholesale sector's decline of 0.19% and the S&P 500's loss of 0.84% [1]. - The upcoming earnings report on May 29, 2025, is anticipated to show earnings of $4.24 per share, representing a year-over-year growth of 12.17% [2]. - For the fiscal year, earnings are projected at $17.95 per share, with revenue expected to reach $274.23 billion, marking increases of +11.42% and +7.77% respectively from the previous year [3]. Analyst Estimates - Recent changes in analyst estimates for Costco are crucial, as they reflect short-term business trends and can indicate optimism about the company's outlook [4]. - The Zacks Rank system, which incorporates these estimate changes, currently rates Costco at 3 (Hold), with a recent upward shift of 0.06% in the consensus EPS estimate [6]. Valuation Metrics - Costco has a Forward P/E ratio of 54.51, significantly higher than the industry average of 21.76, suggesting that Costco is trading at a premium [7]. - The company also has a PEG ratio of 5.84, compared to the Retail - Discount Stores industry's average PEG ratio of 2.71, indicating a higher valuation relative to expected earnings growth [8]. Industry Context - The Retail - Discount Stores industry, part of the broader Retail-Wholesale sector, holds a Zacks Industry Rank of 83, placing it in the top 34% of over 250 industries [9].

Core Viewpoint - Ross Stores, Inc. (ROST) is trading at a discount compared to its industry peers, with a forward P/E ratio of 21.41X, significantly lower than the industry average of 31.61X, making it an attractive opportunity for long-term, value-focused investors [1][4]. Valuation Comparison - ROST's valuation is compelling when compared to major discount retailers such as Costco (51.07X), Burlington (23.14X), and TJX (27.93X) [4]. Stock Performance - ROST stock has shown a growth of 9.3% over the past month, outperforming the broader Retail-Wholesale sector's decline of 0.2% and the Zacks Retail - Discount Stores industry's growth of 3% [5]. - In comparison, peers like TJX and Costco gained 3.9% and 3.3%, while Burlington lost 6.4% during the same period [6]. Sales Growth - ROST experienced a 3% improvement in comparable store sales in Q4 fiscal 2024, driven by increased customer traffic and larger basket sizes, resulting in a year-over-year sales growth of 3% [10]. - The company's business model focuses on competitive bargains and off-price retailing, which has helped maintain its appeal across various economic conditions [11][12]. Expansion Plans - ROST plans to open 19 new stores in Q1 fiscal 2025, including 16 Ross and 3 dd's DISCOUNTS, with an overall target of approximately 90 new locations for fiscal 2025 [13]. Earnings Estimates - The Zacks Consensus Estimate for ROST's earnings per share has increased by 1.4% and 7.8% for fiscal 2025 and 2026, respectively [14]. Near-Term Challenges - Despite its strengths, ROST faces challenges due to macroeconomic volatility, rising inflation, and geopolitical uncertainty, which have affected consumer confidence and discretionary spending [15][16]. - For Q1 fiscal 2025, ROST anticipates comparable store sales to be flat to down by 3%, with total sales projected to decline by 1% to increase by 3% year-over-year [16][17]. Strategic Focus - ROST's strategy emphasizes value-oriented off-price retailing, delivering branded and designer goods at discounted prices, which has helped maintain its competitive advantage [19].

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Industry Overview - The Retail – Discount Stores industry is facing challenges from shifting consumer behaviors, intense competition, and evolving tariff policies, which are expected to impact the sector's trajectory [1] - Inflation is affecting household budgets, leading to more cautious spending even in traditionally resilient discount categories [1] - Rising labor and sourcing costs are significant hurdles for retailers operating on thin margins [1] - To regain momentum, discount retailers need to rebuild consumer confidence and spending capacity through strategic pricing, inventory optimization, and operational efficiencies [1] Key Industry Trends - **Muted Consumer Demand Raises Revenue Concerns**: Inflation and geopolitical issues are straining consumer purchasing power, with the consumer sentiment index dropping to 50.8 from 57.0, marking the fourth consecutive month of decline [4] - **Cost Overhang Likely to Keep Margins Under Pressure**: The competitive landscape, particularly from e-commerce, is pressuring margins due to high costs associated with digital enhancements and marketing [5] - **Consumers Seek Better Bargains**: There is a growing demand for discounted prices among low- to middle-income groups, prompting retailers to innovate and enhance their digital capabilities [6] - **Digitization Key to Sector's Resilient Growth**: Retailers are investing in digital platforms and improving supply chains to adapt to changing consumer shopping patterns, including curbside pickup and contactless payment solutions [7] Industry Performance - The Zacks Retail - Discount Stores industry currently ranks 167, placing it in the bottom 32% of over 250 Zacks industries, indicating bleak near-term prospects [8][9] - The industry's earnings estimate has declined by 5.6% since the beginning of 2025, reflecting a negative earnings outlook [10] Market Comparison - Over the past year, the Zacks Retail – Discount Stores industry has outperformed the broader Retail – Wholesale sector and the S&P 500, with a collective stock advance of 15.8% compared to 11.5% and 5.5% respectively [11] Current Valuation - The industry is trading at a forward 12-month price-to-earnings (P/E) ratio of 31.47, significantly higher than the S&P 500's 19.94 and the sector's 22.09 [14] Notable Companies - **Costco**: The company is benefiting from growth strategies, better price management, and strong membership trends, with a projected revenue growth of 7.8% and EPS growth of 11.6% [17][18] - **Target**: Target is evolving its business model with a focus on omnichannel capabilities and advanced technologies, expecting sales growth of 0.9% and EPS growth of 1.4% [21][22] - **Dollar General**: The company is leveraging its value-creating initiatives and defensive product mix, with a projected sales growth of 3.7% [25][26] - **Burlington Stores**: The company is adapting to consumer trends and enhancing its merchandising capabilities, with expected revenue growth of 7.8% and EPS growth of 12.6% [29][30]

Costco Wholesale Corporation (COST) and Target Corporation (TGT) are two of the most recognized names in the Retail–Discount Stores industry. Costco, with a massive market capitalization of about $433 billion, operates a membership-based warehouse model focused on selling bulk goods at discounted prices. Target, with a market capitalization of nearly $42 billion, operates as a general merchandise retailer, catering to a broad consumer base with a mix of essential goods, apparel, electronics and household it ...

Company Performance - TJX ended the recent trading session at $125.43, demonstrating a +0.4% swing from the preceding day's closing price, outperforming the S&P 500's daily loss of 4.84% [1] - Prior to today's trading, shares of TJX had gained 1.54% over the past month, outpacing the Retail-Wholesale sector's loss of 5.85% and the S&P 500's loss of 4.7% during the same period [1] Upcoming Earnings - TJX is forecasted to report an EPS of $0.90, showcasing a 3.23% downward movement from the corresponding quarter of the prior year, while revenue is expected to be $12.97 billion, showing a 3.94% escalation compared to the year-ago quarter [2] - For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.43 per share and revenue of $58.75 billion, signifying shifts of +3.99% and +4.24%, respectively, from the last year [3] Analyst Estimates and Valuation - The Zacks Rank system indicates that TJX holds a rank of 3 (Hold), with a Forward P/E ratio of 28.19, representing a premium compared to its industry's average Forward P/E of 20.66 [5] - TJX currently has a PEG ratio of 3.11, higher than the industry average PEG ratio of 2.58 [6] Industry Context - The Retail - Discount Stores industry, part of the Retail-Wholesale sector, currently has a Zacks Industry Rank of 157, placing it in the bottom 37% of all 250+ industries [6] - The strength of individual industry groups is measured by the Zacks Industry Rank, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [7]