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Starbucks (SBUX) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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In the latest close session, Starbucks (SBUX - Free Report) was down 1.83% at $99.82. The stock trailed the S&P 500, which registered a daily loss of 1.22%. On the other hand, the Dow registered a loss of 0.98%, and the technology-centric Nasdaq decreased by 1.35%.
The coffee chain's shares have seen a decrease of 4.42% over the last month, not keeping up with the Retail-Wholesale sector's loss of 2.86% and the S&P 500's gain of 1.56%.
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 $0.65, showcasing a 30% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.47 billion, up 0.13% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.4 per share and revenue of $38.27 billion. These totals would mark changes of +12.68% and +2.91%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Starbucks. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 0.15% higher within the past month. At present, Starbucks boasts a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Starbucks is presently trading at a Forward P/E ratio of 42.39. This valuation marks a premium compared to its industry average Forward P/E of 19.48.
Investors should also note that SBUX has a PEG ratio of 2.02 right now. 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 1.84.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 205, which puts it in the bottom 16% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Starbucks (SBUX) Sees a More Significant Dip Than Broader Market: Some Facts to Know
In the latest close session, Starbucks (SBUX - Free Report) was down 1.83% at $99.82. The stock trailed the S&P 500, which registered a daily loss of 1.22%. On the other hand, the Dow registered a loss of 0.98%, and the technology-centric Nasdaq decreased by 1.35%.
The coffee chain's shares have seen a decrease of 4.42% over the last month, not keeping up with the Retail-Wholesale sector's loss of 2.86% and the S&P 500's gain of 1.56%.
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 $0.65, showcasing a 30% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.47 billion, up 0.13% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.4 per share and revenue of $38.27 billion. These totals would mark changes of +12.68% and +2.91%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Starbucks. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 0.15% higher within the past month. At present, Starbucks boasts a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Starbucks is presently trading at a Forward P/E ratio of 42.39. This valuation marks a premium compared to its industry average Forward P/E of 19.48.
Investors should also note that SBUX has a PEG ratio of 2.02 right now. 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 1.84.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 205, which puts it in the bottom 16% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.