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Starbucks (SBUX) Dips More Than Broader Market: What You Should Know
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In the latest close session, Starbucks (SBUX - Free Report) was down 1.01% at $99.17. This move lagged the S&P 500's daily loss of 0.61%. On the other hand, the Dow registered a loss of 0.26%, and the technology-centric Nasdaq decreased by 0.93%.
Shares of the coffee chain have appreciated by 3.53% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 2.49%, and the S&P 500's loss of 2.25%.
Analysts and investors alike will be keeping a close eye on the performance of Starbucks in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.42, reflecting a 2.44% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $9.1 billion, up 3.83% from the prior-year quarter.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $2.31 per share and revenue of $38.37 billion. These results would represent year-over-year changes of +8.45% and +3.19%, respectively.
Investors should also pay attention to any latest changes in 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 business outlook.
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.
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 past month, the Zacks Consensus EPS estimate has moved 0.27% lower. Right now, Starbucks possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Starbucks is at present trading with a Forward P/E ratio of 43.45. This represents a premium compared to its industry average Forward P/E of 20.27.
Also, we should mention that SBUX has a PEG ratio of 2.23. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 1.88.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 164, putting it in the bottom 34% of all 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Starbucks (SBUX) Dips More Than Broader Market: What You Should Know
In the latest close session, Starbucks (SBUX - Free Report) was down 1.01% at $99.17. This move lagged the S&P 500's daily loss of 0.61%. On the other hand, the Dow registered a loss of 0.26%, and the technology-centric Nasdaq decreased by 0.93%.
Shares of the coffee chain have appreciated by 3.53% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 2.49%, and the S&P 500's loss of 2.25%.
Analysts and investors alike will be keeping a close eye on the performance of Starbucks in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.42, reflecting a 2.44% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $9.1 billion, up 3.83% from the prior-year quarter.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $2.31 per share and revenue of $38.37 billion. These results would represent year-over-year changes of +8.45% and +3.19%, respectively.
Investors should also pay attention to any latest changes in 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 business outlook.
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.
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 past month, the Zacks Consensus EPS estimate has moved 0.27% lower. Right now, Starbucks possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Starbucks is at present trading with a Forward P/E ratio of 43.45. This represents a premium compared to its industry average Forward P/E of 20.27.
Also, we should mention that SBUX has a PEG ratio of 2.23. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 1.88.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 164, putting it in the bottom 34% of all 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.