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Starbucks (SBUX) Outpaces Stock Market Gains: What You Should Know
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Starbucks (SBUX - Free Report) closed the most recent trading day at $64.92, moving +0.7% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.01%. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, added 0.45%.
Heading into today, shares of the coffee chain had lost 5.07% over the past month, outpacing the Retail-Wholesale sector's loss of 6.6% and the S&P 500's loss of 7.29% in that time.
Wall Street will be looking for positivity from SBUX as it approaches its next earnings report date. This is expected to be January 24, 2019. On that day, SBUX is projected to report earnings of $0.65 per share, which would represent no growth from the year-ago period. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.48 billion, up 6.76% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.64 per share and revenue of $26.13 billion. These totals would mark changes of +9.09% and +5.69%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for SBUX. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.18% lower. SBUX currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, SBUX is holding a Forward P/E ratio of 24.41. For comparison, its industry has an average Forward P/E of 22.87, which means SBUX is trading at a premium to the group.
Investors should also note that SBUX has a PEG ratio of 1.81 right now. 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. SBUX's industry had an average PEG ratio of 1.81 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 34% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Starbucks (SBUX) Outpaces Stock Market Gains: What You Should Know
Starbucks (SBUX - Free Report) closed the most recent trading day at $64.92, moving +0.7% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.01%. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, added 0.45%.
Heading into today, shares of the coffee chain had lost 5.07% over the past month, outpacing the Retail-Wholesale sector's loss of 6.6% and the S&P 500's loss of 7.29% in that time.
Wall Street will be looking for positivity from SBUX as it approaches its next earnings report date. This is expected to be January 24, 2019. On that day, SBUX is projected to report earnings of $0.65 per share, which would represent no growth from the year-ago period. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.48 billion, up 6.76% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.64 per share and revenue of $26.13 billion. These totals would mark changes of +9.09% and +5.69%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for SBUX. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.18% lower. SBUX currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, SBUX is holding a Forward P/E ratio of 24.41. For comparison, its industry has an average Forward P/E of 22.87, which means SBUX is trading at a premium to the group.
Investors should also note that SBUX has a PEG ratio of 1.81 right now. 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. SBUX's industry had an average PEG ratio of 1.81 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 34% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.