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Starbucks (SBUX) Gains As Market Dips: What You Should Know
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Starbucks (SBUX - Free Report) closed at $72.30 in the latest trading session, marking a +0.47% move from the prior day. This change outpaced the S&P 500's 0.08% loss on the day. Meanwhile, the Dow gained 0.06%, and the Nasdaq, a tech-heavy index, lost 0.07%.
Prior to today's trading, shares of the coffee chain had gained 1.78% over the past month. This has outpaced the Retail-Wholesale sector's gain of 1.51% and the S&P 500's gain of 0.52% in that time.
Wall Street will be looking for positivity from SBUX as it approaches its next earnings report date. The company is expected to report EPS of $0.56, up 5.66% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.31 billion, up 4.54% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.72 per share and revenue of $26.28 billion. These totals would mark changes of +12.4% and +6.33%, respectively, from last year.
Any recent changes to analyst estimates for SBUX should also be noted by investors. Recent revisions tend to reflect the latest near-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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. SBUX currently has a Zacks Rank of #2 (Buy).
Digging into valuation, SBUX currently has a Forward P/E ratio of 26.49. For comparison, its industry has an average Forward P/E of 22.98, which means SBUX is trading at a premium to the group.
We can also see that SBUX currently has a PEG ratio of 2.06. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Restaurants was holding an average PEG ratio of 2.04 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 161, putting it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow SBUX in the coming trading sessions, be sure to utilize Zacks.com.
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Starbucks (SBUX) Gains As Market Dips: What You Should Know
Starbucks (SBUX - Free Report) closed at $72.30 in the latest trading session, marking a +0.47% move from the prior day. This change outpaced the S&P 500's 0.08% loss on the day. Meanwhile, the Dow gained 0.06%, and the Nasdaq, a tech-heavy index, lost 0.07%.
Prior to today's trading, shares of the coffee chain had gained 1.78% over the past month. This has outpaced the Retail-Wholesale sector's gain of 1.51% and the S&P 500's gain of 0.52% in that time.
Wall Street will be looking for positivity from SBUX as it approaches its next earnings report date. The company is expected to report EPS of $0.56, up 5.66% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.31 billion, up 4.54% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.72 per share and revenue of $26.28 billion. These totals would mark changes of +12.4% and +6.33%, respectively, from last year.
Any recent changes to analyst estimates for SBUX should also be noted by investors. Recent revisions tend to reflect the latest near-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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. SBUX currently has a Zacks Rank of #2 (Buy).
Digging into valuation, SBUX currently has a Forward P/E ratio of 26.49. For comparison, its industry has an average Forward P/E of 22.98, which means SBUX is trading at a premium to the group.
We can also see that SBUX currently has a PEG ratio of 2.06. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Restaurants was holding an average PEG ratio of 2.04 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 161, putting it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow SBUX in the coming trading sessions, be sure to utilize Zacks.com.