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Starbucks (SBUX) Gains But Lags Market: What You Should Know
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In the latest trading session, Starbucks (SBUX - Free Report) closed at $90.78, marking a +0.86% move from the previous day. This change lagged the S&P 500's 1.64% gain on the day. Elsewhere, the Dow gained 0.88%, while the tech-heavy Nasdaq added 2.56%.
Heading into today, shares of the coffee chain had gained 6.04% over the past month, outpacing the Retail-Wholesale sector's gain of 4.01% and the S&P 500's gain of 2.44% in that time.
SBUX will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.32, down 54.29% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.07 billion, down 10.05% from the prior-year quarter.
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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 1.7% higher. SBUX is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, SBUX is holding a Forward P/E ratio of 33.44. Its industry sports an average Forward P/E of 31.53, so we one might conclude that SBUX is trading at a premium comparatively.
Meanwhile, SBUX's PEG ratio is currently 2.33. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 4.23 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 63, putting it in the top 25% 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) Gains But Lags Market: What You Should Know
In the latest trading session, Starbucks (SBUX - Free Report) closed at $90.78, marking a +0.86% move from the previous day. This change lagged the S&P 500's 1.64% gain on the day. Elsewhere, the Dow gained 0.88%, while the tech-heavy Nasdaq added 2.56%.
Heading into today, shares of the coffee chain had gained 6.04% over the past month, outpacing the Retail-Wholesale sector's gain of 4.01% and the S&P 500's gain of 2.44% in that time.
SBUX will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.32, down 54.29% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.07 billion, down 10.05% from the prior-year quarter.
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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 1.7% higher. SBUX is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, SBUX is holding a Forward P/E ratio of 33.44. Its industry sports an average Forward P/E of 31.53, so we one might conclude that SBUX is trading at a premium comparatively.
Meanwhile, SBUX's PEG ratio is currently 2.33. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 4.23 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 63, putting it in the top 25% 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.