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Here's Why Starbucks (SBUX) Fell More Than Broader Market
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Starbucks (SBUX - Free Report) closed the most recent trading day at $86.81, moving -4.83% from the previous trading session. This change lagged the S&P 500's 1.67% loss on the day. Meanwhile, the Dow experienced a drop of 1.73%, and the technology-dominated Nasdaq saw a decrease of 2.15%.
Coming into today, shares of the coffee chain had lost 6.99% in the past month. In that same time, the Retail-Wholesale sector lost 4.2%, while the S&P 500 lost 6.15%.
The investment community will be paying close attention to the earnings performance of Starbucks in its upcoming release. The company's upcoming EPS is projected at $0.42, signifying a 2.44% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $9.1 billion, indicating a 3.87% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.31 per share and a revenue of $38.37 billion, representing changes of +8.45% and +3.18%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Starbucks. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.27% lower. Starbucks is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Starbucks is currently being traded at a Forward P/E ratio of 39.56. For comparison, its industry has an average Forward P/E of 18.76, which means Starbucks is trading at a premium to the group.
One should further note that SBUX currently holds a PEG ratio of 2.03. 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. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 1.85.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 180, finds itself in the bottom 27% echelons 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.
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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Here's Why Starbucks (SBUX) Fell More Than Broader Market
Starbucks (SBUX - Free Report) closed the most recent trading day at $86.81, moving -4.83% from the previous trading session. This change lagged the S&P 500's 1.67% loss on the day. Meanwhile, the Dow experienced a drop of 1.73%, and the technology-dominated Nasdaq saw a decrease of 2.15%.
Coming into today, shares of the coffee chain had lost 6.99% in the past month. In that same time, the Retail-Wholesale sector lost 4.2%, while the S&P 500 lost 6.15%.
The investment community will be paying close attention to the earnings performance of Starbucks in its upcoming release. The company's upcoming EPS is projected at $0.42, signifying a 2.44% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $9.1 billion, indicating a 3.87% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.31 per share and a revenue of $38.37 billion, representing changes of +8.45% and +3.18%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Starbucks. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.27% lower. Starbucks is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Starbucks is currently being traded at a Forward P/E ratio of 39.56. For comparison, its industry has an average Forward P/E of 18.76, which means Starbucks is trading at a premium to the group.
One should further note that SBUX currently holds a PEG ratio of 2.03. 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. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 1.85.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 180, finds itself in the bottom 27% echelons 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.