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Starbucks (SBUX) Rises As Market Takes a Dip: Key Facts
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Starbucks (SBUX - Free Report) closed the most recent trading day at $98.76, moving +1.39% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.62%. On the other hand, the Dow registered a loss of 1.87%, and the technology-centric Nasdaq decreased by 1.98%.
The stock of coffee chain has fallen by 8.6% in the past month, lagging the Retail-Wholesale sector's loss of 6.71% and the S&P 500's loss of 0.03%.
Market participants will be closely following the financial results of Starbucks in its upcoming release. The company's upcoming EPS is projected at $0.65, signifying a 30.00% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $9.47 billion, showing a 0.13% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.4 per share and revenue of $38.27 billion, which would represent changes of +12.68% and +2.91%, respectively, from the prior year.
Any recent changes to analyst estimates for Starbucks should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.49% increase. Starbucks is holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, Starbucks currently has a Forward P/E ratio of 40.61. This valuation marks a premium compared to its industry average Forward P/E of 20.26.
It's also important to note that SBUX currently trades at a PEG ratio of 1.94. 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. The Retail - Restaurants industry currently had an average PEG ratio of 1.79 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 208, placing it within the bottom 15% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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Starbucks (SBUX) Rises As Market Takes a Dip: Key Facts
Starbucks (SBUX - Free Report) closed the most recent trading day at $98.76, moving +1.39% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.62%. On the other hand, the Dow registered a loss of 1.87%, and the technology-centric Nasdaq decreased by 1.98%.
The stock of coffee chain has fallen by 8.6% in the past month, lagging the Retail-Wholesale sector's loss of 6.71% and the S&P 500's loss of 0.03%.
Market participants will be closely following the financial results of Starbucks in its upcoming release. The company's upcoming EPS is projected at $0.65, signifying a 30.00% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $9.47 billion, showing a 0.13% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.4 per share and revenue of $38.27 billion, which would represent changes of +12.68% and +2.91%, respectively, from the prior year.
Any recent changes to analyst estimates for Starbucks should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.49% increase. Starbucks is holding a Zacks Rank of #1 (Strong Buy) right now.
Digging into valuation, Starbucks currently has a Forward P/E ratio of 40.61. This valuation marks a premium compared to its industry average Forward P/E of 20.26.
It's also important to note that SBUX currently trades at a PEG ratio of 1.94. 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. The Retail - Restaurants industry currently had an average PEG ratio of 1.79 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 208, placing it within the bottom 15% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks 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 follow all of these stock-moving metrics, and many more, on Zacks.com.