Starbucks (SBUX - Free Report) closed at $66.77 in the latest trading session, marking a -0.61% move from the prior day. This change lagged the S&P 500's 0.3% gain on the day. Meanwhile, the Dow 0%, and the Nasdaq, a tech-heavy index, added 0.92%.
Heading into today, shares of the coffee chain had gained 14.23% over the past month, outpacing the Retail-Wholesale sector's loss of 5% and the S&P 500's loss of 4.37% 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. In that report, analysts expect SBUX to post earnings of $0.64 per share. This would mark 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.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.65 per share and revenue of $26.12 billion. These totals would mark changes of +9.5% and +5.65%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for SBUX. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.86% higher. SBUX is currently a Zacks Rank #3 (Hold).
Looking at its valuation, SBUX is holding a Forward P/E ratio of 25.39. Its industry sports an average Forward P/E of 23.63, so we one might conclude that SBUX is trading at a premium comparatively.
Investors should also note that SBUX has a PEG ratio of 1.88 right now. 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 1.85 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 149, which puts it in the bottom 42% of all 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.