- Costco (NASDAQ:COST) is falling today as fears of inflation weigh on retail stocks
- This comes after Target (NYSE:TGT) and Walmart (NYSE:WMT) released earnings reports this week
- Both companies missed adjusted earnings per share estimates for the quarter
Costco (NASDAQ:COST) stock isn’t doing so hot Wednesday as earnings reports from other retailers drag down the company’s shares.
Target (NYSE:TGT) and Walmart (NYSE:WMT) are both contributing to this as both companies posted poor earnings reports for the first quarter of the year. It’s not uncommon to see stocks in the same market move in sympathy with each other. That appears to be what’s happening today with COST stock.
In the case of Target, the retailer reported adjusted earnings per share of $2.19 on revenue of $25.17 billion. Those are mixed results next to Wall Street’s estimates of $3.07 per share and revenue of $24.48 billion.
Moving on to Walmart, the retail giant reported adjusted EPS of $1.30 alongside revenue of $141.57 billion. This is another case of mixed results with analysts looking for an adjusted EPS of $1.48 on revenue of $138.94 billion.
So what’s behind these lackluster earnings reports? It appears that investors have inflation to blame as both companies cite it as a cause of missed EPS. The fear of inflation hurting retailers isn’t doing COST stock any favors today.
Shares of COST stock are experiencing heavy trading on Wednesday as inflation fears rattle investors. That has more than 5 million shares on the move as of this writing. For comparison, the company’s daily average trading volume is around 2.6 million shares.
COST stock is down 11.9% as of Wednesday afternoon.
There’s more hot stock market news traders will want to know about today!
Fortunately, we’ve got them covered will all the latest stock market news for Wednesday! A few examples include what’s happening with shares of DecisionPoint (NYSEMKT:DPSI), Genius Brands (NASDAQ:GNUS), and Digital World Acquisition (NASDAQ:DWAC) stock today. You can read all about that at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
