Starbucks (SBUX - Free Report) closed the most recent trading day at $88.38, moving +0.76% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.46%. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq lost 1.25%.
Prior to today's trading, shares of the coffee chain had gained 11.04% over the past month. This has outpaced the Retail-Wholesale sector's gain of 2.5% and the S&P 500's gain of 1% in that time.
Wall Street will be looking for positivity from SBUX as it approaches its next earnings report date. On that day, SBUX is projected to report earnings of $0.31 per share, which would represent a year-over-year decline of 55.71%. Meanwhile, our latest consensus estimate is calling for revenue of $6.02 billion, down 10.84% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.97 per share and revenue of $23.33 billion, which would represent changes of -65.72% and -12%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for SBUX. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 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 90.36. Its industry sports an average Forward P/E of 33.45, so we one might conclude that SBUX is trading at a premium comparatively.
Meanwhile, SBUX's PEG ratio is currently 6.57. 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 industry currently had an average PEG ratio of 3.83 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 92, putting it in the top 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.