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Starbucks (SBUX) Suffers a Larger Drop Than the General Market: Key Insights
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Starbucks (SBUX - Free Report) closed the latest trading day at $93.09, indicating a -1.17% change from the previous session's end. This change lagged the S&P 500's daily loss of 0.15%. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq gained 0.09%.
Shares of the coffee chain witnessed a loss of 4.01% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 3.43% and the S&P 500's gain of 3.5%.
The upcoming earnings release of Starbucks will be of great interest to investors. On that day, Starbucks is projected to report earnings of $0.94 per share, which would represent year-over-year growth of 25.33%. At the same time, our most recent consensus estimate is projecting a revenue of $9.66 billion, reflecting a 10.82% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.14 per share and a revenue of $39.56 billion, indicating changes of +16.95% and +9.97%, respectively, from the former year.
Investors should also take note of any recent adjustments 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 last 30 days, the Zacks Consensus EPS estimate has moved 0.11% lower. At present, Starbucks boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Starbucks has a Forward P/E ratio of 22.78 right now. This denotes a premium relative to the industry's average Forward P/E of 18.98.
Meanwhile, SBUX's PEG ratio is currently 1.38. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 1.76.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 71, placing it within the top 29% of over 250 industries.
The Zacks Industry Rank is ordered 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) Suffers a Larger Drop Than the General Market: Key Insights
Starbucks (SBUX - Free Report) closed the latest trading day at $93.09, indicating a -1.17% change from the previous session's end. This change lagged the S&P 500's daily loss of 0.15%. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq gained 0.09%.
Shares of the coffee chain witnessed a loss of 4.01% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 3.43% and the S&P 500's gain of 3.5%.
The upcoming earnings release of Starbucks will be of great interest to investors. On that day, Starbucks is projected to report earnings of $0.94 per share, which would represent year-over-year growth of 25.33%. At the same time, our most recent consensus estimate is projecting a revenue of $9.66 billion, reflecting a 10.82% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.14 per share and a revenue of $39.56 billion, indicating changes of +16.95% and +9.97%, respectively, from the former year.
Investors should also take note of any recent adjustments 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 last 30 days, the Zacks Consensus EPS estimate has moved 0.11% lower. At present, Starbucks boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Starbucks has a Forward P/E ratio of 22.78 right now. This denotes a premium relative to the industry's average Forward P/E of 18.98.
Meanwhile, SBUX's PEG ratio is currently 1.38. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 1.76.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 71, placing it within the top 29% of over 250 industries.
The Zacks Industry Rank is ordered 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.