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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 $99.26, marking a +0.81% move from the previous day. This move outpaced the S&P 500's daily gain of 0.69%. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, lost 8.94%.
Heading into today, shares of the coffee chain had lost 7.67% over the past month, lagging the Retail-Wholesale sector's gain of 4.22% and the S&P 500's gain of 5.41% in that time.
Investors will be hoping for strength from Starbucks as it approaches its next earnings release. On that day, Starbucks is projected to report earnings of $0.96 per share, which would represent year-over-year growth of 14.29%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.31 billion, up 14.21% from the year-ago period.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $3.44 per share and revenue of $36.06 billion. These results would represent year-over-year changes of +16.22% and +11.83%, respectively.
It is also important to note the recent changes to analyst estimates for Starbucks. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 0.11% lower. Starbucks is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Starbucks has a Forward P/E ratio of 28.62 right now. Its industry sports an average Forward P/E of 22.67, so we one might conclude that Starbucks is trading at a premium comparatively.
Meanwhile, SBUX's PEG ratio is currently 1.7. 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. SBUX's industry had an average PEG ratio of 1.95 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 42, putting it in the top 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) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Starbucks (SBUX - Free Report) closed at $99.26, marking a +0.81% move from the previous day. This move outpaced the S&P 500's daily gain of 0.69%. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, lost 8.94%.
Heading into today, shares of the coffee chain had lost 7.67% over the past month, lagging the Retail-Wholesale sector's gain of 4.22% and the S&P 500's gain of 5.41% in that time.
Investors will be hoping for strength from Starbucks as it approaches its next earnings release. On that day, Starbucks is projected to report earnings of $0.96 per share, which would represent year-over-year growth of 14.29%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.31 billion, up 14.21% from the year-ago period.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $3.44 per share and revenue of $36.06 billion. These results would represent year-over-year changes of +16.22% and +11.83%, respectively.
It is also important to note the recent changes to analyst estimates for Starbucks. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 0.11% lower. Starbucks is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Starbucks has a Forward P/E ratio of 28.62 right now. Its industry sports an average Forward P/E of 22.67, so we one might conclude that Starbucks is trading at a premium comparatively.
Meanwhile, SBUX's PEG ratio is currently 1.7. 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. SBUX's industry had an average PEG ratio of 1.95 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 42, putting it in the top 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.