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Why the Market Dipped But Starbucks (SBUX) Gained Today
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Starbucks (SBUX - Free Report) closed at $87.11 in the latest trading session, marking a +1.04% move from the prior day. This move outpaced the S&P 500's daily loss of 0.22%. Elsewhere, the Dow saw an upswing of 0.06%, while the tech-heavy Nasdaq depreciated by 0.52%.
Shares of the coffee chain have depreciated by 6.9% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 2.01% and the S&P 500's loss of 1.66%.
The investment community will be paying close attention to the earnings performance of Starbucks in its upcoming release. The company is slated to reveal its earnings on April 30, 2024. It is anticipated that the company will report an EPS of $0.81, marking a 9.46% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $9.18 billion, up 5.26% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.03 per share and revenue of $38.68 billion. These totals would mark changes of +13.84% and +7.51%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Starbucks. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.9% decrease. Starbucks is currently sporting a Zacks Rank of #4 (Sell).
From a valuation perspective, Starbucks is currently exchanging hands at a Forward P/E ratio of 21.4. This expresses a premium compared to the average Forward P/E of 20.83 of its industry.
Investors should also note that SBUX has a PEG ratio of 1.39 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Restaurants industry currently had an average PEG ratio of 1.85 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 93, positioning it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Why the Market Dipped But Starbucks (SBUX) Gained Today
Starbucks (SBUX - Free Report) closed at $87.11 in the latest trading session, marking a +1.04% move from the prior day. This move outpaced the S&P 500's daily loss of 0.22%. Elsewhere, the Dow saw an upswing of 0.06%, while the tech-heavy Nasdaq depreciated by 0.52%.
Shares of the coffee chain have depreciated by 6.9% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 2.01% and the S&P 500's loss of 1.66%.
The investment community will be paying close attention to the earnings performance of Starbucks in its upcoming release. The company is slated to reveal its earnings on April 30, 2024. It is anticipated that the company will report an EPS of $0.81, marking a 9.46% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $9.18 billion, up 5.26% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.03 per share and revenue of $38.68 billion. These totals would mark changes of +13.84% and +7.51%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Starbucks. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.9% decrease. Starbucks is currently sporting a Zacks Rank of #4 (Sell).
From a valuation perspective, Starbucks is currently exchanging hands at a Forward P/E ratio of 21.4. This expresses a premium compared to the average Forward P/E of 20.83 of its industry.
Investors should also note that SBUX has a PEG ratio of 1.39 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Restaurants industry currently had an average PEG ratio of 1.85 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 93, positioning it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.