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Starbucks (SBUX) Stock Dips While Market Gains: Key Facts
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In the latest trading session, Starbucks (SBUX - Free Report) closed at $102.11, marking a -2.07% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.72%. Meanwhile, the Dow experienced a rise of 0.3%, and the technology-dominated Nasdaq saw an increase of 1.12%.
Shares of the coffee chain have appreciated by 9.42% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 0.64%, and the S&P 500's loss of 0.9%.
Market participants will be closely following the financial results of Starbucks in its upcoming release. In that report, analysts expect Starbucks to post earnings of $0.65 per share. This would mark year-over-year growth of 30%. Alongside, our most recent consensus estimate is anticipating revenue of $9.43 billion, indicating a 0.26% downward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.4 per share and revenue of $38.27 billion, indicating changes of +12.68% and +2.91%, respectively, compared to the previous year.
It is also important to note the 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Starbucks currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Starbucks is currently being traded at a Forward P/E ratio of 43.47. This indicates a premium in contrast to its industry's Forward P/E of 20.74.
It's also important to note that SBUX currently trades at a PEG ratio of 2.07. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Retail - Restaurants industry stood at 2.03 at the close of the market yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 198, putting it in the bottom 20% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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) Stock Dips While Market Gains: Key Facts
In the latest trading session, Starbucks (SBUX - Free Report) closed at $102.11, marking a -2.07% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.72%. Meanwhile, the Dow experienced a rise of 0.3%, and the technology-dominated Nasdaq saw an increase of 1.12%.
Shares of the coffee chain have appreciated by 9.42% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 0.64%, and the S&P 500's loss of 0.9%.
Market participants will be closely following the financial results of Starbucks in its upcoming release. In that report, analysts expect Starbucks to post earnings of $0.65 per share. This would mark year-over-year growth of 30%. Alongside, our most recent consensus estimate is anticipating revenue of $9.43 billion, indicating a 0.26% downward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.4 per share and revenue of $38.27 billion, indicating changes of +12.68% and +2.91%, respectively, compared to the previous year.
It is also important to note the 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Starbucks currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Starbucks is currently being traded at a Forward P/E ratio of 43.47. This indicates a premium in contrast to its industry's Forward P/E of 20.74.
It's also important to note that SBUX currently trades at a PEG ratio of 2.07. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Retail - Restaurants industry stood at 2.03 at the close of the market yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 198, putting it in the bottom 20% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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.