Costco Wholesale Corporation (NASDAQ:COST)’s 17.50% Growth Estimate in Focus

For the next year, sell-side analysts are expecting EPS growth of 8.94% for Costco Wholesale Corporation (NASDAQ:COST). Analysts are expecting an EPS change of 17.50% for the current year.

Wall Street analysts polled by Thomson Reuters have a current recommendation of 2.20 on a consensus basis for the stock. The same analysts see shares reaching $236.83 within the next year on a consensus basis.Although the investing process is fairly straightforward, securing consistent returns in the stock market is not easy. Throwing hard earned money at un-researched investments can eventually lead the investor down the road to ruin. Every individual investor may have different goals when starting out. Aligning these goals with a specific plan can create a solid foundation for the future. Nobody can predict what the future will hold, but being aware of market conditions can be a great asset when attempting to navigate the terrain while mitigating risk. Once the vision of the individual investor is clear, the road to sustaining profits may be much easier to travel.

RECENT PERFORMANCE

Let’s take a look at how the stock has been performing recently.  Over the past twelve months, Costco Wholesale Corporation (NASDAQ:COST)’s stock was 2.46%.  Over the last week of the month, it was -1.16%, -13.17% over the last quarter, and  -4.36% for the past six months.

Over the past 50 days, Costco Wholesale Corporation stock’s -10.20% off of the high and 10.81% removed from the low.  Their 52-Week High and Low are noted here.  -14.34% (High), 16.63%, (Low). 

Fundamental analysis examines the financial elements of a company, for example; sales, cash flow, profit and balance sheet.  These numbers are then crunched to create theoretical valuations of companies. 

Earnings Per Share (EPS) is the earnings made by a company divided by their number of shares.  EPS enables the earnings of a company to easily be compared to their competitors. The higher the number, the more profit per dollar is being made on investor capital.  Costco Wholesale Corporation’s EPS for the trailing 12 months is 7.42.  Their EPS should be compared to other companies in the Services sector.

Price-to-Earnings Ratio is the current share price divided by annual earnings per share.  P/E provides a number that details how many years of earnings it will take a stock to recoup the value of one share at current price levels.  Easy to calculate and understand, P/E is an extremely common ratio that is used to compare valuations of stocks against each other relatively.  Costco Wholesale Corporation’s  P/E ratio is 28.14. 

Costco Wholesale Corporation (NASDAQ:COST)’s RSI (Relative Strength Index) is 44.73.  RSI is a technical indicator of price momentum, comparing the size of recent gains to the size of recent losses and establishes oversold and overbought positions.

As company earnings reports continue to roll in, investors will be watching to see which companies hit their numbers for the last reporting period. Investors will also be watching which sectors are reporting the best earnings numbers. A positive overall earnings season could mean that the stock market could keep climbing. Many investors may be cautious with the market trading at current levels. Even though the gloom and doom prognosticators are out in full force, investors have to do the research and decide for themselves which way they believe the market will move in the next couple of months.   

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