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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 $64.28, moving +0.8% from the previous trading session. This change outpaced the S&P 500's 0.76% gain on the day. At the same time, the Dow added 0.67%, and the tech-heavy Nasdaq gained 0.71%.
Prior to today's trading, shares of the coffee chain had lost 0.45% over the past month. This has lagged the Retail-Wholesale sector's gain of 2.28% and the S&P 500's gain of 0.75% in that time.
Investors will be hoping for strength from SBUX as it approaches its next earnings release, which 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 prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.49 billion, up 6.78% from the prior-year quarter.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $2.64 per share and revenue of $26.12 billion. These results would represent year-over-year changes of +9.09% and +5.68%, respectively.
Investors should also note any recent changes to analyst estimates for SBUX. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. SBUX is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, SBUX is currently trading at a Forward P/E ratio of 24.14. This represents a premium compared to its industry's average Forward P/E of 21.28.
It is also worth noting that SBUX currently has a PEG ratio of 1.79. 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. The Retail - Restaurants industry currently had an average PEG ratio of 1.65 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 158, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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 $64.28, moving +0.8% from the previous trading session. This change outpaced the S&P 500's 0.76% gain on the day. At the same time, the Dow added 0.67%, and the tech-heavy Nasdaq gained 0.71%.
Prior to today's trading, shares of the coffee chain had lost 0.45% over the past month. This has lagged the Retail-Wholesale sector's gain of 2.28% and the S&P 500's gain of 0.75% in that time.
Investors will be hoping for strength from SBUX as it approaches its next earnings release, which 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 prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.49 billion, up 6.78% from the prior-year quarter.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $2.64 per share and revenue of $26.12 billion. These results would represent year-over-year changes of +9.09% and +5.68%, respectively.
Investors should also note any recent changes to analyst estimates for SBUX. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. SBUX is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, SBUX is currently trading at a Forward P/E ratio of 24.14. This represents a premium compared to its industry's average Forward P/E of 21.28.
It is also worth noting that SBUX currently has a PEG ratio of 1.79. 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. The Retail - Restaurants industry currently had an average PEG ratio of 1.65 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 158, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.