Back to top

Image: Bigstock

Starbucks (SBUX) Stock Moves -0.89%: What You Should Know

Read MoreHide Full Article

Starbucks (SBUX - Free Report) closed the most recent trading day at $108.66, moving -0.89% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.18%. Meanwhile, the Dow lost 1.34%, and the Nasdaq, a tech-heavy index, lost 0.92%.

Coming into today, shares of the coffee chain had lost 1.62% in the past month. In that same time, the Retail-Wholesale sector lost 1.32%, while the S&P 500 lost 0.73%.

Starbucks will be looking to display strength as it nears its next earnings release. In that report, analysts expect Starbucks to post earnings of $0.79 per share. This would mark year-over-year growth of 29.51%. Our most recent consensus estimate is calling for quarterly revenue of $7.97 billion, up 18.05% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.47 per share and revenue of $32.68 billion. These totals would mark changes of +7.1% and +12.44%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Starbucks. These revisions help to show the ever-changing nature of 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 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 has moved 1.12% higher. Starbucks is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Starbucks currently has a Forward P/E ratio of 31.63. This valuation marks a premium compared to its industry's average Forward P/E of 22.33.

Investors should also note that SBUX has a PEG ratio of 1.41 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. The Retail - Restaurants was holding an average PEG ratio of 2.11 at yesterday's closing price.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 227, putting it in the bottom 11% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Starbucks Corporation (SBUX) - free report >>

Published in