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Starbucks (SBUX) Dips More Than Broader Market: What You Should Know
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In the latest trading session, Starbucks (SBUX - Free Report) closed at $96.52, marking a -2.57% move from the previous day. This move lagged the S&P 500's daily loss of 0.45%. On the other hand, the Dow registered a loss of 0.63%, and the technology-centric Nasdaq decreased by 0.78%.
The coffee chain's shares have seen a decrease of 8.2% over the last month, not keeping up with the Retail-Wholesale sector's loss of 5.39% and the S&P 500's loss of 1.99%.
Analysts and investors alike will be keeping a close eye on the performance of Starbucks in its upcoming earnings disclosure. The company is expected to report EPS of $0.71, up 36.54% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $9.27 billion, reflecting a 3.17% fall from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.59 per share and a revenue of $38.03 billion, indicating changes of +21.6% and +2.27%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Starbucks. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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 shifted 0.11% upward. Starbucks is currently a Zacks Rank #3 (Hold).
Looking at valuation, Starbucks is presently trading at a Forward P/E ratio of 38.3. This signifies a premium in comparison to the average Forward P/E of 21.48 for its industry.
It's also important to note that SBUX currently trades at a PEG ratio of 1.74. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. SBUX's industry had an average PEG ratio of 1.77 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 162, placing it within the bottom 35% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.
View the Zacks #1 Rank List
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Starbucks (SBUX) Dips More Than Broader Market: What You Should Know
In the latest trading session, Starbucks (SBUX - Free Report) closed at $96.52, marking a -2.57% move from the previous day. This move lagged the S&P 500's daily loss of 0.45%. On the other hand, the Dow registered a loss of 0.63%, and the technology-centric Nasdaq decreased by 0.78%.
The coffee chain's shares have seen a decrease of 8.2% over the last month, not keeping up with the Retail-Wholesale sector's loss of 5.39% and the S&P 500's loss of 1.99%.
Analysts and investors alike will be keeping a close eye on the performance of Starbucks in its upcoming earnings disclosure. The company is expected to report EPS of $0.71, up 36.54% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $9.27 billion, reflecting a 3.17% fall from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.59 per share and a revenue of $38.03 billion, indicating changes of +21.6% and +2.27%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Starbucks. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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 shifted 0.11% upward. Starbucks is currently a Zacks Rank #3 (Hold).
Looking at valuation, Starbucks is presently trading at a Forward P/E ratio of 38.3. This signifies a premium in comparison to the average Forward P/E of 21.48 for its industry.
It's also important to note that SBUX currently trades at a PEG ratio of 1.74. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. SBUX's industry had an average PEG ratio of 1.77 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 162, placing it within the bottom 35% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.