From Nasdaq: 2024-05-29 23:23:18

Costco is set to release its fiscal third-quarter results on May 30, with expectations of lower stock trading due to revenue and earnings missing forecasts. The stock has outperformed the S&P index this year, showing consistent revenue growth and customer experience improvements. Costco’s valuation is currently higher than pre-pandemic levels, with a forecasted stock price of $726, 11% lower than the current market price.

Revenue for Costco’s fiscal Q3 2024 is estimated at $55.9 billion, slightly below consensus estimates. In Q2, the company saw a 6% revenue increase driven by comparable sales growth and eCommerce expansion. Membership fees play a significant role in Costco’s profits, with strong renewal rates driving revenue stability. Costco’s expected EPS of $3.65 is lower than consensus, with a net cash balance on its balance sheet.

Costco’s stock price estimate of $726 is lower than the current market price, based on an EPS estimate of $16.20 and P/E multiple of 44.8x in fiscal 2024. Comparisons with peers highlight Costco’s performance metrics. In terms of returns, Costco has shown an impressive 408% total return from 2017 to 2024, outperforming the S&P 500.Investors can explore Trefis Market-Beating Portfolios for investment opportunities.



Read more at Nasdaq: Up 23% Since Beginning of This Year, Will Costco’s Strong Run Continue Following Q3 Results?