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Starbucks (SBUX) Gains But Lags Market: What You Should Know
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Starbucks (SBUX - Free Report) closed at $99.77 in the latest trading session, marking a +1.19% move from the prior day. The stock lagged the S&P 500's daily gain of 1.75%. At the same time, the Dow added 1.05%, and the tech-heavy Nasdaq gained 7.84%.
Heading into today, shares of the coffee chain had lost 3.52% over the past month, outpacing the Retail-Wholesale sector's loss of 5.68% and the S&P 500's loss of 4.4% in that time.
Starbucks will be looking to display strength as it nears its next earnings release. In that report, analysts expect Starbucks to post earnings of $0.76 per share. This would mark year-over-year growth of 5.56%. Meanwhile, our latest consensus estimate is calling for revenue of $8.79 billion, up 9.19% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.41 per share and revenue of $35.97 billion. These totals would mark changes of +15.2% and +11.54%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Starbucks. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.31% higher. Starbucks currently has a Zacks Rank of #3 (Hold).
Investors should also note Starbucks's current valuation metrics, including its Forward P/E ratio of 28.88. Its industry sports an average Forward P/E of 20.63, so we one might conclude that Starbucks is trading at a premium comparatively.
We can also see that SBUX currently has a PEG ratio of 2.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.17 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Starbucks (SBUX) Gains But Lags Market: What You Should Know
Starbucks (SBUX - Free Report) closed at $99.77 in the latest trading session, marking a +1.19% move from the prior day. The stock lagged the S&P 500's daily gain of 1.75%. At the same time, the Dow added 1.05%, and the tech-heavy Nasdaq gained 7.84%.
Heading into today, shares of the coffee chain had lost 3.52% over the past month, outpacing the Retail-Wholesale sector's loss of 5.68% and the S&P 500's loss of 4.4% in that time.
Starbucks will be looking to display strength as it nears its next earnings release. In that report, analysts expect Starbucks to post earnings of $0.76 per share. This would mark year-over-year growth of 5.56%. Meanwhile, our latest consensus estimate is calling for revenue of $8.79 billion, up 9.19% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.41 per share and revenue of $35.97 billion. These totals would mark changes of +15.2% and +11.54%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Starbucks. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.31% higher. Starbucks currently has a Zacks Rank of #3 (Hold).
Investors should also note Starbucks's current valuation metrics, including its Forward P/E ratio of 28.88. Its industry sports an average Forward P/E of 20.63, so we one might conclude that Starbucks is trading at a premium comparatively.
We can also see that SBUX currently has a PEG ratio of 2.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.17 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.