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Starbucks (SBUX) Stock Falls Amid Market Uptick: What Investors Need to Know
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The latest trading session saw Starbucks (SBUX - Free Report) ending at $87.13, denoting a -0.07% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.15%. Elsewhere, the Dow saw a downswing of 0.02%, while the tech-heavy Nasdaq appreciated by 0.32%.
Coming into today, shares of the coffee chain had lost 5.3% in the past month. In that same time, the Retail-Wholesale sector gained 1.12%, while the S&P 500 gained 1.65%.
The investment community will be closely monitoring the performance of Starbucks in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.82, marking a 10.81% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $9.21 billion, up 5.57% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.05 per share and revenue of $38.78 billion, which would represent changes of +14.41% and +7.78%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Starbucks. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.34% lower. Starbucks is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that Starbucks has a Forward P/E ratio of 21.52 right now. This denotes no noticeable deviation relative to the industry's average Forward P/E of 21.52.
We can also see that SBUX currently has a PEG ratio of 1.39. 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. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 1.81.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 147, positioning it in the bottom 42% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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) Stock Falls Amid Market Uptick: What Investors Need to Know
The latest trading session saw Starbucks (SBUX - Free Report) ending at $87.13, denoting a -0.07% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.15%. Elsewhere, the Dow saw a downswing of 0.02%, while the tech-heavy Nasdaq appreciated by 0.32%.
Coming into today, shares of the coffee chain had lost 5.3% in the past month. In that same time, the Retail-Wholesale sector gained 1.12%, while the S&P 500 gained 1.65%.
The investment community will be closely monitoring the performance of Starbucks in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.82, marking a 10.81% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $9.21 billion, up 5.57% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.05 per share and revenue of $38.78 billion, which would represent changes of +14.41% and +7.78%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Starbucks. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.34% lower. Starbucks is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that Starbucks has a Forward P/E ratio of 21.52 right now. This denotes no noticeable deviation relative to the industry's average Forward P/E of 21.52.
We can also see that SBUX currently has a PEG ratio of 1.39. 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. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 1.81.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 147, positioning it in the bottom 42% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.