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Starbucks (SBUX) Rises But Trails Market: What Investors Should Know
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Starbucks (SBUX - Free Report) ended the recent trading session at $95.33, demonstrating a +0.65% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 1.03%. On the other hand, the Dow registered a gain of 0.87%, and the technology-centric Nasdaq increased by 1.26%.
Shares of the coffee chain have depreciated by 8.44% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 6.75% and the S&P 500's gain of 3.01%.
Investors will be eagerly watching for the performance of Starbucks in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.95, reflecting a 26.67% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $9.7 billion, up 11.27% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.14 per share and revenue of $39.61 billion. These totals would mark changes of +16.95% and +10.09%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.08% lower. Currently, Starbucks is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Starbucks has a Forward P/E ratio of 22.88 right now. This expresses a premium compared to the average Forward P/E of 21.96 of its industry.
Also, we should mention that SBUX has a PEG ratio of 1.38. 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. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 1.94.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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) Rises But Trails Market: What Investors Should Know
Starbucks (SBUX - Free Report) ended the recent trading session at $95.33, demonstrating a +0.65% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 1.03%. On the other hand, the Dow registered a gain of 0.87%, and the technology-centric Nasdaq increased by 1.26%.
Shares of the coffee chain have depreciated by 8.44% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 6.75% and the S&P 500's gain of 3.01%.
Investors will be eagerly watching for the performance of Starbucks in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.95, reflecting a 26.67% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $9.7 billion, up 11.27% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.14 per share and revenue of $39.61 billion. These totals would mark changes of +16.95% and +10.09%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.08% lower. Currently, Starbucks is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Starbucks has a Forward P/E ratio of 22.88 right now. This expresses a premium compared to the average Forward P/E of 21.96 of its industry.
Also, we should mention that SBUX has a PEG ratio of 1.38. 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. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 1.94.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.