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Starbucks (SBUX) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Starbucks (SBUX - Free Report) closed at $108.31, marking a +0.78% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.33%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.92%.
Prior to today's trading, shares of the coffee chain had gained 8.89% over the past month. This has outpaced the Retail-Wholesale sector's gain of 4.83% and the S&P 500's gain of 5.67% 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 $0.63, up 6.78% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.39 billion, up 9.88% from the prior-year quarter.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $3.41 per share and revenue of $35.86 billion. These results would represent year-over-year changes of +15.2% and +11.18%, respectively.
It is also important to note the recent changes to analyst estimates for Starbucks. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.1% lower. Starbucks is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Starbucks is currently trading at a Forward P/E ratio of 31.56. For comparison, its industry has an average Forward P/E of 24.23, which means Starbucks is trading at a premium to the group.
Meanwhile, SBUX's PEG ratio is currently 1.83. 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. The Retail - Restaurants industry currently 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 44, putting it in the top 18% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Starbucks (SBUX) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Starbucks (SBUX - Free Report) closed at $108.31, marking a +0.78% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.33%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.92%.
Prior to today's trading, shares of the coffee chain had gained 8.89% over the past month. This has outpaced the Retail-Wholesale sector's gain of 4.83% and the S&P 500's gain of 5.67% 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 $0.63, up 6.78% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.39 billion, up 9.88% from the prior-year quarter.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $3.41 per share and revenue of $35.86 billion. These results would represent year-over-year changes of +15.2% and +11.18%, respectively.
It is also important to note the recent changes to analyst estimates for Starbucks. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.1% lower. Starbucks is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Starbucks is currently trading at a Forward P/E ratio of 31.56. For comparison, its industry has an average Forward P/E of 24.23, which means Starbucks is trading at a premium to the group.
Meanwhile, SBUX's PEG ratio is currently 1.83. 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. The Retail - Restaurants industry currently 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 44, putting it in the top 18% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.