Costco Surges 2% to $998.40, Beats Sector as Q1 EPS Forecast Jumps 12.7%
Costco shares jumped 2.07% to close at $998.40, outperforming the S&P 500's 1.57% drop and rising 2.86% over the past month versus a 4.94% sector decline. Analysts project March quarter EPS of $4.53 (up 12.7% year-over-year) on revenue of $69.22 billion (up 8.6% year-over-year).
1. Stock Performance and Market Context
Costco closed at $998.40, up 2.07% on the session, outperforming the S&P 500’s 1.57% decline. Over the past month the stock gained 2.86%, versus a 4.94% drop in the Retail-Wholesale sector and a 0.29% fall in the S&P 500.
2. Q1 Earnings Projections
Analysts forecast Costco’s fiscal Q1 EPS at $4.53, a 12.7% increase from the prior-year period, against projected revenue of $69.22 billion, up 8.6% year-over-year. These estimates set the stage for the company’s March 5 earnings report.
3. Annual Forecasts and Analyst Revisions
Full-year estimates call for EPS of $20.18 (up 12.2%) and revenue of $297.12 billion (up 7.95%). Consensus EPS estimates have risen 0.42% over the past month, and Costco holds a Zacks Rank of #3 (Hold).
4. Valuation Metrics and Industry Comparison
Costco trades at a forward P/E of 48.48, a significant premium to the industry average of 27.05. Its PEG ratio of 5.16 also exceeds the Retail-Discount Stores average of 2.88, while the industry ranks in the top 11% by Zacks Industry Rank.