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Starbucks (SBUX) Dips More Than Broader Markets: What You Should Know
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Starbucks (SBUX - Free Report) closed the most recent trading day at $87.16, moving -0.5% from the previous trading session. This change lagged the S&P 500's daily loss of 0.43%. At the same time, the Dow lost 0.34%, and the tech-heavy Nasdaq lost 0.62%.
Coming into today, shares of the coffee chain had lost 9.81% in the past month. In that same time, the Retail-Wholesale sector lost 10.38%, while the S&P 500 lost 6.57%.
Investors will be hoping for strength from Starbucks as it approaches its next earnings release. The company is expected to report EPS of $0.62, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.64 billion, up 14.57% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.34 per share and revenue of $32.79 billion. These totals would mark changes of +3.09% and +12.84%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Starbucks. 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.21% lower. Starbucks currently has a Zacks Rank of #4 (Sell).
Digging into valuation, Starbucks currently has a Forward P/E ratio of 26.22. This represents a premium compared to its industry's average Forward P/E of 20.28.
Meanwhile, SBUX's PEG ratio is currently 2.11. 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. SBUX's industry had an average PEG ratio of 1.96 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 207, putting it in the bottom 19% 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.
To follow SBUX in the coming trading sessions, be sure to utilize Zacks.com.
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Starbucks (SBUX) Dips More Than Broader Markets: What You Should Know
Starbucks (SBUX - Free Report) closed the most recent trading day at $87.16, moving -0.5% from the previous trading session. This change lagged the S&P 500's daily loss of 0.43%. At the same time, the Dow lost 0.34%, and the tech-heavy Nasdaq lost 0.62%.
Coming into today, shares of the coffee chain had lost 9.81% in the past month. In that same time, the Retail-Wholesale sector lost 10.38%, while the S&P 500 lost 6.57%.
Investors will be hoping for strength from Starbucks as it approaches its next earnings release. The company is expected to report EPS of $0.62, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.64 billion, up 14.57% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.34 per share and revenue of $32.79 billion. These totals would mark changes of +3.09% and +12.84%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Starbucks. 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.21% lower. Starbucks currently has a Zacks Rank of #4 (Sell).
Digging into valuation, Starbucks currently has a Forward P/E ratio of 26.22. This represents a premium compared to its industry's average Forward P/E of 20.28.
Meanwhile, SBUX's PEG ratio is currently 2.11. 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. SBUX's industry had an average PEG ratio of 1.96 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 207, putting it in the bottom 19% 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.
To follow SBUX in the coming trading sessions, be sure to utilize Zacks.com.