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Starbucks (SBUX) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Starbucks (SBUX - Free Report) closed at $91.13, marking a -0.15% move from the previous day. This move lagged the S&P 500's daily gain of 0.01%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 0.67%.
Coming into today, shares of the coffee chain had lost 6.87% in the past month. In that same time, the Retail-Wholesale sector lost 4.61%, while the S&P 500 lost 4.45%.
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 18.52%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.23 billion, up 9.67% from the year-ago period.
Any recent changes to analyst estimates for Starbucks should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.06% higher. Starbucks is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Starbucks has a Forward P/E ratio of 26.42 right now. Its industry sports an average Forward P/E of 20.75, so we one might conclude that Starbucks is trading at a premium comparatively.
Meanwhile, SBUX's PEG ratio is currently 1.6. 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 1.65 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 85, putting it in the top 34% 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) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Starbucks (SBUX - Free Report) closed at $91.13, marking a -0.15% move from the previous day. This move lagged the S&P 500's daily gain of 0.01%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 0.67%.
Coming into today, shares of the coffee chain had lost 6.87% in the past month. In that same time, the Retail-Wholesale sector lost 4.61%, while the S&P 500 lost 4.45%.
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 18.52%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.23 billion, up 9.67% from the year-ago period.
Any recent changes to analyst estimates for Starbucks should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.06% higher. Starbucks is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Starbucks has a Forward P/E ratio of 26.42 right now. Its industry sports an average Forward P/E of 20.75, so we one might conclude that Starbucks is trading at a premium comparatively.
Meanwhile, SBUX's PEG ratio is currently 1.6. 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 1.65 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 85, putting it in the top 34% 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.