In the latest trading session, Starbucks (SBUX - Free Report) closed at $68.72, marking a +0.82% move from the previous day. This move outpaced the S&P 500's daily loss of 0.25%. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, lost 0.53%.
Heading into today, shares of the coffee chain had gained 21.69% over the past month, outpacing the Retail-Wholesale sector's loss of 0.61% and the S&P 500's loss of 2.35% in that time.
Investors will be hoping for strength from SBUX as it approaches its next earnings release, which is expected to be January 24, 2019. On that day, SBUX is projected to report earnings of $0.64 per share, which would represent a year-over-year decline of 1.54%. Meanwhile, our latest consensus estimate is calling for revenue of $6.47 billion, up 6.52% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.65 per share and revenue of $26.12 billion, which would represent changes of +9.5% and +5.65%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for SBUX. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.81% higher. SBUX currently has a Zacks Rank of #3 (Hold).
In terms of valuation, SBUX is currently trading at a Forward P/E ratio of 25.76. This valuation marks a premium compared to its industry's average Forward P/E of 24.34.
It is also worth noting that SBUX currently has a PEG ratio of 1.91. 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. The Retail - Restaurants industry currently had an average PEG ratio of 1.88 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 183, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.