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Starbucks (SBUX) Outpaces Stock Market Gains: What You Should Know
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Starbucks (SBUX - Free Report) closed the most recent trading day at $104.83, moving +0.67% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.37%. Elsewhere, the Dow gained 0.98%, while the tech-heavy Nasdaq added 0.62%.
Prior to today's trading, shares of the coffee chain had lost 0.4% over the past month. This has lagged the Retail-Wholesale sector's gain of 3.65% and the S&P 500's gain of 3.71% in that time.
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 $0.77, up 30.51% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.39 billion, up 9.88% from the year-ago period.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $3.40 per share and revenue of $35.86 billion. These results would represent year-over-year changes of +14.86% and +11.18%, respectively.
Any recent changes to analyst estimates for Starbucks should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 0.05% lower. Starbucks currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Starbucks currently has a Forward P/E ratio of 30.6. Its industry sports an average Forward P/E of 22.21, so we one might conclude that Starbucks is trading at a premium comparatively.
It is also worth noting that SBUX currently has a PEG ratio of 1.77. 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 1.97 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 39, putting it in the top 16% 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.
To follow SBUX in the coming trading sessions, be sure to utilize Zacks.com.
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Starbucks (SBUX) Outpaces Stock Market Gains: What You Should Know
Starbucks (SBUX - Free Report) closed the most recent trading day at $104.83, moving +0.67% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.37%. Elsewhere, the Dow gained 0.98%, while the tech-heavy Nasdaq added 0.62%.
Prior to today's trading, shares of the coffee chain had lost 0.4% over the past month. This has lagged the Retail-Wholesale sector's gain of 3.65% and the S&P 500's gain of 3.71% in that time.
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 $0.77, up 30.51% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.39 billion, up 9.88% from the year-ago period.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $3.40 per share and revenue of $35.86 billion. These results would represent year-over-year changes of +14.86% and +11.18%, respectively.
Any recent changes to analyst estimates for Starbucks should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 0.05% lower. Starbucks currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Starbucks currently has a Forward P/E ratio of 30.6. Its industry sports an average Forward P/E of 22.21, so we one might conclude that Starbucks is trading at a premium comparatively.
It is also worth noting that SBUX currently has a PEG ratio of 1.77. 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 1.97 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 39, putting it in the top 16% 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.
To follow SBUX in the coming trading sessions, be sure to utilize Zacks.com.