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Starbucks (SBUX) Gains As Market Dips: What You Should Know
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In the latest trading session, Starbucks (SBUX - Free Report) closed at $77.92, marking a +0.21% move from the previous day. This change outpaced the S&P 500's 0.45% loss on the day. Elsewhere, the Dow lost 0.67%, while the tech-heavy Nasdaq lost 0.05%.
Coming into today, shares of the coffee chain had gained 7.54% in the past month. In that same time, the Retail-Wholesale sector lost 0.6%, while the S&P 500 lost 1.89%.
Wall Street will be looking for positivity from Starbucks as it approaches its next earnings report date. The company is expected to report EPS of $0.78, down 22.77% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.21 billion, up 9.53% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.88 per share and revenue of $32.37 billion. These totals would mark changes of -11.11% and +11.37%, respectively, from last year.
Any recent changes to analyst estimates for Starbucks 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. 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, 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 0.59% lower. Starbucks currently has a Zacks Rank of #3 (Hold).
Investors should also note Starbucks's current valuation metrics, including its Forward P/E ratio of 27. Its industry sports an average Forward P/E of 18.96, so we one might conclude that Starbucks is trading at a premium comparatively.
Investors should also note that SBUX has a PEG ratio of 2.3 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.74 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 210, putting it in the bottom 17% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Starbucks (SBUX) Gains As Market Dips: What You Should Know
In the latest trading session, Starbucks (SBUX - Free Report) closed at $77.92, marking a +0.21% move from the previous day. This change outpaced the S&P 500's 0.45% loss on the day. Elsewhere, the Dow lost 0.67%, while the tech-heavy Nasdaq lost 0.05%.
Coming into today, shares of the coffee chain had gained 7.54% in the past month. In that same time, the Retail-Wholesale sector lost 0.6%, while the S&P 500 lost 1.89%.
Wall Street will be looking for positivity from Starbucks as it approaches its next earnings report date. The company is expected to report EPS of $0.78, down 22.77% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.21 billion, up 9.53% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.88 per share and revenue of $32.37 billion. These totals would mark changes of -11.11% and +11.37%, respectively, from last year.
Any recent changes to analyst estimates for Starbucks 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. 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, 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 0.59% lower. Starbucks currently has a Zacks Rank of #3 (Hold).
Investors should also note Starbucks's current valuation metrics, including its Forward P/E ratio of 27. Its industry sports an average Forward P/E of 18.96, so we one might conclude that Starbucks is trading at a premium comparatively.
Investors should also note that SBUX has a PEG ratio of 2.3 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.74 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 210, putting it in the bottom 17% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.