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Starbucks (SBUX) Gains But Lags Market: What You Should Know
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Starbucks (SBUX - Free Report) closed the most recent trading day at $99.15, moving +0.09% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.12%. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 5.14%.
Investors will be hoping for strength from Starbucks as it approaches its next earnings release. In that report, analysts expect Starbucks to post earnings of $0.64 per share. This would mark a year-over-year decline of 23.81%. Our most recent consensus estimate is calling for quarterly revenue of $9.31 billion, up 14.26% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.43 per share and revenue of $36.06 billion, which would represent changes of +15.88% and +11.82%, respectively, from the prior year.
Any recent changes to analyst estimates for Starbucks should also be noted by investors. 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.
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 0.47% lower. Starbucks currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Starbucks has a Forward P/E ratio of 28.89 right now. This represents a premium compared to its industry's average Forward P/E of 24.59.
Meanwhile, SBUX's PEG ratio is currently 1.72. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.02 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 34, putting it in the top 14% 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.
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) Gains But Lags Market: What You Should Know
Starbucks (SBUX - Free Report) closed the most recent trading day at $99.15, moving +0.09% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.12%. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 5.14%.
Investors will be hoping for strength from Starbucks as it approaches its next earnings release. In that report, analysts expect Starbucks to post earnings of $0.64 per share. This would mark a year-over-year decline of 23.81%. Our most recent consensus estimate is calling for quarterly revenue of $9.31 billion, up 14.26% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.43 per share and revenue of $36.06 billion, which would represent changes of +15.88% and +11.82%, respectively, from the prior year.
Any recent changes to analyst estimates for Starbucks should also be noted by investors. 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.
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 0.47% lower. Starbucks currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Starbucks has a Forward P/E ratio of 28.89 right now. This represents a premium compared to its industry's average Forward P/E of 24.59.
Meanwhile, SBUX's PEG ratio is currently 1.72. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.02 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 34, putting it in the top 14% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.