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Starbucks (SBUX) Stock Moves -1.14%: What You Should Know

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The most recent trading session ended with Starbucks (SBUX - Free Report) standing at $84.92, reflecting a -1.14% shift from the previouse trading day's closing. This change was narrower than the S&P 500's daily loss of 1.46%. Elsewhere, the Dow lost 1.24%, while the tech-heavy Nasdaq lost 1.63%.

The the stock of coffee chain has fallen by 6.28% in the past month, lagging the Retail-Wholesale sector's gain of 2.17% and the S&P 500's gain of 1.6%.

The investment community will be closely monitoring the performance of Starbucks in its forthcoming earnings report. The company is forecasted to report an EPS of $0.82, showcasing a 10.81% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $9.21 billion, indicating a 5.57% growth compared to the corresponding quarter of the prior year.

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.

Investors might also notice recent changes to analyst estimates for Starbucks. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 witnessed a 0.49% decrease. Starbucks is holding a Zacks Rank of #4 (Sell) right now.

In the context of valuation, Starbucks is at present trading with a Forward P/E ratio of 21.23. Its industry sports an average Forward P/E of 21.23, so one might conclude that Starbucks is trading at no noticeable deviation comparatively.

We can also see that SBUX currently has a PEG ratio of 1.37. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 1.83.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 99, this industry ranks in the top 40% of all industries, numbering over 250.

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.

Be sure to use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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