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Starbucks (SBUX) Outpaces Stock Market Gains: What You Should Know
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Starbucks (SBUX - Free Report) closed at $96.11 in the latest trading session, marking a +1.78% move from the prior day. This change outpaced the S&P 500's 0.58% gain on the day. On the other hand, the Dow registered a gain of 0.49%, and the technology-centric Nasdaq increased by 0.45%.
The coffee chain's stock has dropped by 9.61% in the past month, falling short of the Retail-Wholesale sector's loss of 4.5% and the S&P 500's gain of 0.84%.
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%. In the meantime, our current consensus estimate forecasts the revenue to be $9.25 billion, indicating a 3.3% decline compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.59 per share and revenue of $38.02 billion, indicating changes of +21.6% and +2.26%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Starbucks. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 1.09% increase. Starbucks is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Starbucks is currently being traded at a Forward P/E ratio of 29.96. Its industry sports an average Forward P/E of 18.82, so one might conclude that Starbucks is trading at a premium comparatively.
It is also worth noting that SBUX currently has a PEG ratio of 1.36. 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. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 1.7.
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 Zacks Industry Rank gauges the strength of our 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.
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) Outpaces Stock Market Gains: What You Should Know
Starbucks (SBUX - Free Report) closed at $96.11 in the latest trading session, marking a +1.78% move from the prior day. This change outpaced the S&P 500's 0.58% gain on the day. On the other hand, the Dow registered a gain of 0.49%, and the technology-centric Nasdaq increased by 0.45%.
The coffee chain's stock has dropped by 9.61% in the past month, falling short of the Retail-Wholesale sector's loss of 4.5% and the S&P 500's gain of 0.84%.
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%. In the meantime, our current consensus estimate forecasts the revenue to be $9.25 billion, indicating a 3.3% decline compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.59 per share and revenue of $38.02 billion, indicating changes of +21.6% and +2.26%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Starbucks. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 1.09% increase. Starbucks is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Starbucks is currently being traded at a Forward P/E ratio of 29.96. Its industry sports an average Forward P/E of 18.82, so one might conclude that Starbucks is trading at a premium comparatively.
It is also worth noting that SBUX currently has a PEG ratio of 1.36. 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. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 1.7.
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 Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.