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Starbucks (SBUX) Rises Higher Than Market: Key Facts
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Starbucks (SBUX - Free Report) closed at $94.89 in the latest trading session, marking a +1.32% move from the prior day. This move outpaced the S&P 500's daily gain of 0.51%. On the other hand, the Dow registered a gain of 0.93%, and the technology-centric Nasdaq increased by 0.48%.
Prior to today's trading, shares of the coffee chain had lost 12.69% lagged the Retail-Wholesale sector's loss of 6.89% and the S&P 500's gain of 0.74%.
The investment community will be closely monitoring the performance of Starbucks in its forthcoming earnings report. On that day, Starbucks is projected to report earnings of $0.72 per share, which would represent year-over-year growth of 38.46%. Our most recent consensus estimate is calling for quarterly revenue of $9.27 billion, down 3.12% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.62 per share and a revenue of $38.03 billion, signifying shifts of +23% and +2.27%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Starbucks. These revisions help to show the ever-changing nature 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. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, there's been a 0.12% rise in the Zacks Consensus EPS estimate. Currently, Starbucks is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Starbucks is currently being traded at a Forward P/E ratio of 35.7. This denotes a premium relative to the industry average Forward P/E of 20.49.
Also, we should mention that SBUX has a PEG ratio of 1.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock'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 159, placing it within the bottom 36% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
View the Zacks #1 Rank List
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Starbucks (SBUX) Rises Higher Than Market: Key Facts
Starbucks (SBUX - Free Report) closed at $94.89 in the latest trading session, marking a +1.32% move from the prior day. This move outpaced the S&P 500's daily gain of 0.51%. On the other hand, the Dow registered a gain of 0.93%, and the technology-centric Nasdaq increased by 0.48%.
Prior to today's trading, shares of the coffee chain had lost 12.69% lagged the Retail-Wholesale sector's loss of 6.89% and the S&P 500's gain of 0.74%.
The investment community will be closely monitoring the performance of Starbucks in its forthcoming earnings report. On that day, Starbucks is projected to report earnings of $0.72 per share, which would represent year-over-year growth of 38.46%. Our most recent consensus estimate is calling for quarterly revenue of $9.27 billion, down 3.12% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.62 per share and a revenue of $38.03 billion, signifying shifts of +23% and +2.27%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Starbucks. These revisions help to show the ever-changing nature 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. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, there's been a 0.12% rise in the Zacks Consensus EPS estimate. Currently, Starbucks is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Starbucks is currently being traded at a Forward P/E ratio of 35.7. This denotes a premium relative to the industry average Forward P/E of 20.49.
Also, we should mention that SBUX has a PEG ratio of 1.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock'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 159, placing it within the bottom 36% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.