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Starbucks (SBUX) Outperforms Broader Market: What You Need to Know
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In the latest market close, Starbucks (SBUX - Free Report) reached $91.59, with a +0.64% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 0.57%. Meanwhile, the Dow experienced a rise of 0.83%, and the technology-dominated Nasdaq saw an increase of 0.39%.
Coming into today, shares of the coffee chain had lost 2.37% in the past month. In that same time, the Retail-Wholesale sector gained 2.73%, while the S&P 500 gained 2.97%.
Analysts and investors alike will be keeping a close eye on the performance of Starbucks in its upcoming earnings disclosure. In that report, analysts expect Starbucks to post earnings of $0.83 per share. This would mark year-over-year growth of 12.16%. Simultaneously, our latest consensus estimate expects the revenue to be $9.22 billion, showing a 5.76% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.07 per share and revenue of $38.82 billion. These totals would mark changes of +14.97% and +7.9%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Starbucks. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.08% lower. Starbucks presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Starbucks is currently being traded at a Forward P/E ratio of 22.39. This represents a premium compared to its industry's average Forward P/E of 21.
One should further note that SBUX currently holds a PEG ratio of 1.44. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 1.97.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 146, which puts it in the bottom 43% 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.
To follow SBUX in the coming trading sessions, be sure to utilize Zacks.com.
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Starbucks (SBUX) Outperforms Broader Market: What You Need to Know
In the latest market close, Starbucks (SBUX - Free Report) reached $91.59, with a +0.64% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 0.57%. Meanwhile, the Dow experienced a rise of 0.83%, and the technology-dominated Nasdaq saw an increase of 0.39%.
Coming into today, shares of the coffee chain had lost 2.37% in the past month. In that same time, the Retail-Wholesale sector gained 2.73%, while the S&P 500 gained 2.97%.
Analysts and investors alike will be keeping a close eye on the performance of Starbucks in its upcoming earnings disclosure. In that report, analysts expect Starbucks to post earnings of $0.83 per share. This would mark year-over-year growth of 12.16%. Simultaneously, our latest consensus estimate expects the revenue to be $9.22 billion, showing a 5.76% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.07 per share and revenue of $38.82 billion. These totals would mark changes of +14.97% and +7.9%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Starbucks. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.08% lower. Starbucks presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Starbucks is currently being traded at a Forward P/E ratio of 22.39. This represents a premium compared to its industry's average Forward P/E of 21.
One should further note that SBUX currently holds a PEG ratio of 1.44. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 1.97.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 146, which puts it in the bottom 43% 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.
To follow SBUX in the coming trading sessions, be sure to utilize Zacks.com.