Is Costco Wholesale (COST) stock outperforming its retail peers this year?


The Retail-Wholesale group has many great stocks, but investors should always look for companies that are outperforming their peers. Costco Wholesale (COST) is one stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the industry as a whole? A simple way to answer this question is to take a look at the cumulative performance of COST and the rest of the shares of the Retail-Wholesale group.

Costco Wholesale is one of 208 individual stocks in the retail and wholesale industry. Collectively, these companies rank third in the Zacks industry rankings. Zacks’ industry ranking considers 16 different industry groups. The average Zacks rank of individual stocks within groups is measured and sectors are ranked from best to worst.

Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes revisions to earnings estimates and favors companies with improving earnings prospects. COST currently sports a Zacks rank of # 2 (Buy).

Over the past 90 days, Zacks’ consensus estimate for COST’s annual profit has risen 4.62%. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.

Based on the most recent data, COST has reported 1.01% so far this year. At the same time, Retail-Gros stocks lost an average of 1.12%. This means Costco Wholesale is outperforming the industry as a whole this year.

Looking more specifically, COST belongs to the Retail – Discount Stores industry, a group that includes 8 individual stocks and currently sits at # 37 in the Zacks Industry Rank. On average, this group has gained an average of 5.31% so far this year, which means COST is slightly underperforming its industry in terms of cumulative returns.

Looking ahead, investors interested in retail and wholesale stocks should continue to pay close attention to COST as it looks to continue its strong performance.

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About Timothy Cheatham

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