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Starbucks (SBUX) Gains As Market Dips: What You Should Know
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Starbucks (SBUX - Free Report) closed the most recent trading day at $109.34, moving +0.05% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.58%. Meanwhile, the Dow lost 1.02%, and the Nasdaq, a tech-heavy index, lost 11.95%.
Prior to today's trading, shares of the coffee chain had gained 10.77% over the past month. This has outpaced the Retail-Wholesale sector's gain of 5.64% and the S&P 500's gain of 4.27% in that time.
Wall Street will be looking for positivity from Starbucks as it approaches its next earnings report date. This is expected to be May 2, 2023. The company is expected to report EPS of $0.64, up 8.47% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.39 billion, up 9.9% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.42 per share and revenue of $35.88 billion, which would represent changes of +15.54% and +11.24%, respectively, from the prior year.
Any recent changes to analyst estimates for Starbucks should also be noted by investors. These revisions help to show the ever-changing nature of 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.41% higher. Starbucks is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Starbucks currently has a Forward P/E ratio of 31.92. This valuation marks a premium compared to its industry's average Forward P/E of 24.35.
Also, we should mention that SBUX has a PEG ratio of 1.9. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.03 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Starbucks (SBUX) Gains As Market Dips: What You Should Know
Starbucks (SBUX - Free Report) closed the most recent trading day at $109.34, moving +0.05% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.58%. Meanwhile, the Dow lost 1.02%, and the Nasdaq, a tech-heavy index, lost 11.95%.
Prior to today's trading, shares of the coffee chain had gained 10.77% over the past month. This has outpaced the Retail-Wholesale sector's gain of 5.64% and the S&P 500's gain of 4.27% in that time.
Wall Street will be looking for positivity from Starbucks as it approaches its next earnings report date. This is expected to be May 2, 2023. The company is expected to report EPS of $0.64, up 8.47% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.39 billion, up 9.9% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.42 per share and revenue of $35.88 billion, which would represent changes of +15.54% and +11.24%, respectively, from the prior year.
Any recent changes to analyst estimates for Starbucks should also be noted by investors. These revisions help to show the ever-changing nature of 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.41% higher. Starbucks is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Starbucks currently has a Forward P/E ratio of 31.92. This valuation marks a premium compared to its industry's average Forward P/E of 24.35.
Also, we should mention that SBUX has a PEG ratio of 1.9. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.03 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.