Costco Outperforms The Market In A Weaker Economy
Costco’s price pattern is closely related to the business cycle. Costco outperforms the market when business slows down. Costco will continue to outperform the market.
U.S. Consumer Staples Sector Analysis
UpdatedDec 02, 2021
DataAggregated Company Financials
Companies440
- 7D-1.5%
- 3M-1.3%
- 1Y6.0%
- YTD4.2%
Over the last 7 days, the Consumer Staples industry has dropped 1.5%, driven by a pullback from Walmart of 5.1%. This takes the industry's 12 month performance to a gain of 6.0%.
Sector Valuation and Performance
Has the U.S. Consumer Staples Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Sun, 05 Dec 2021 | US$2.6t | US$2.1t | US$88.3b | 22.4x |
| Tue, 02 Nov 2021 | US$2.7t | US$2.1t | US$90.1b | 24.2x |
| Thu, 30 Sep 2021 | US$2.7t | US$2.1t | US$95.1b | 23.9x |
| Sat, 28 Aug 2021 | US$2.7t | US$2.1t | US$94.0b | 20.7x |
| Sun, 04 Jul 2021 | US$2.7t | US$2.0t | US$93.9b | 20.7x |
| Wed, 07 Apr 2021 | US$2.5t | US$2.0t | US$86.4b | 21.9x |
| Sat, 09 Jan 2021 | US$2.6t | US$1.9t | US$92.8b | 20x |
| Fri, 02 Oct 2020 | US$2.4t | US$1.9t | US$85.0b | 20.2x |
| Mon, 06 Jul 2020 | US$2.1t | US$1.8t | US$72.4b | 20.8x |
| Thu, 09 Apr 2020 | US$1.9t | US$1.8t | US$68.0b | 17.2x |
| Wed, 01 Jan 2020 | US$2.3t | US$1.8t | US$69.0b | 21.3x |
| Sat, 05 Oct 2019 | US$2.2t | US$1.8t | US$59.4b | 22.5x |
| Tue, 09 Jul 2019 | US$2.1t | US$1.8t | US$63.2b | 21.7x |
| Mon, 01 Apr 2019 | US$2.0t | US$1.8t | US$73.5b | 21.6x |
| Thu, 03 Jan 2019 | US$1.8t | US$1.7t | US$75.4b | 18.6x |
PE Ratio
18.6x
Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 20.9x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for companies in the Consumer Staples industry have grown 5.4% per year over the last three years, and revenues for these companies have grown 6.5% per year. This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the U.S. Consumer Staples sector?
| Household Products | 0.84% | |
| Beverage | -0.058% | |
| Personal Products | -0.91% | |
| Food | -1.32% | |
| Food and Staples Retail | -3.87% | |
| Tobacco | -24.89% | |
Industry PE: Investors are most optimistic about the Beverage industry which is trading above its 3-year average PE ratio of 25.7x. However analysts are expecting annual earnings growth of 9.2%, which is lower than the prior year's growth of 24% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Tobacco industry, which is trading below its 3-year average of 24.7x.
Forecasted Growth: Analysts are most optimistic on the Tobacco industry, expecting annual earnings growth of 42% over the next 5 years. However this is lower than its past earnings growth rate of 331% per year. Meanwhile, the Household Products industry is expected to see its earnings grow by 4.8% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| PG Procter & Gamble | 1.6%+US$5.8b | 9.0% | PE26.2x | |
| PEP PepsiCo | 2.2%+US$4.9b | 12.9% | PE28x | |
| PM Philip Morris International | 0.8%+US$1.1b | 10.7% | PE15.5x | |
| GIS General Mills | 2.3%+US$890.4m | 6.3% | PE16.7x | |
| MKC McCormick | 3.5%+US$802.0m | -5.8% | PE31.2x |
