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Starbucks (SBUX) Stock Jumps 5.5%: Will It Continue to Soar?
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Starbucks (SBUX - Free Report) shares ended the last trading session 5.5% higher at $92.70. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.8% loss over the past four weeks.
Starbucks rally is buoyed by optimism regarding the company’s robust outlook for comparable store sales from fiscal 2023 to 2025. Positive investor sentiments were witnessed on the news of recommencement of share repurchase program. The company expects to reward investors with approximately $20 billion in the form of dividends and share repurchases, in the next three years.
This coffee chain is expected to post quarterly earnings of $0.74 per share in its upcoming report, which represents a year-over-year change of -26%. Revenues are expected to be $8.42 billion, up 3.3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Starbucks, the consensus EPS estimate for the quarter has been revised 1.2% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on SBUX going forward to see if this recent jump can turn into more strength down the road.
Starbucks is a member of the Zacks Retail - Restaurants industry. One other stock in the same industry, The ONE Group Hospitality, Inc. (STKS - Free Report) , finished the last trading session 4.5% lower at $7.08. STKS has returned -14.2% over the past month.
The ONE Group Hospitality, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.15. Compared to the company's year-ago EPS, this represents a change of +36.4%. The ONE Group Hospitality, Inc. currently boasts a Zacks Rank of #4 (Sell).
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Starbucks (SBUX) Stock Jumps 5.5%: Will It Continue to Soar?
Starbucks (SBUX - Free Report) shares ended the last trading session 5.5% higher at $92.70. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.8% loss over the past four weeks.
Starbucks rally is buoyed by optimism regarding the company’s robust outlook for comparable store sales from fiscal 2023 to 2025. Positive investor sentiments were witnessed on the news of recommencement of share repurchase program. The company expects to reward investors with approximately $20 billion in the form of dividends and share repurchases, in the next three years.
This coffee chain is expected to post quarterly earnings of $0.74 per share in its upcoming report, which represents a year-over-year change of -26%. Revenues are expected to be $8.42 billion, up 3.3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Starbucks, the consensus EPS estimate for the quarter has been revised 1.2% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on SBUX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Starbucks is a member of the Zacks Retail - Restaurants industry. One other stock in the same industry, The ONE Group Hospitality, Inc. (STKS - Free Report) , finished the last trading session 4.5% lower at $7.08. STKS has returned -14.2% over the past month.
The ONE Group Hospitality, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.15. Compared to the company's year-ago EPS, this represents a change of +36.4%. The ONE Group Hospitality, Inc. currently boasts a Zacks Rank of #4 (Sell).