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Starbucks (SBUX) Gains But Lags Market: What You Should Know
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Starbucks (SBUX - Free Report) closed at $66.82 in the latest trading session, marking a +1.12% move from the prior day. This move lagged the S&P 500's daily gain of 2.3%. Meanwhile, the Dow gained 2.5%, and the Nasdaq, a tech-heavy index, added 2.95%.
Prior to today's trading, shares of the coffee chain had gained 12.78% over the past month. This has outpaced the Retail-Wholesale sector's gain of 1.21% and the S&P 500's gain of 1.21% in that time.
Wall Street will be looking for positivity from SBUX as it approaches its next earnings report date. This 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.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $2.65 per share and revenue of $26.12 billion. These results would represent year-over-year changes of +9.5% and +5.65%, respectively.
Any recent changes to analyst estimates for SBUX should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.81% higher within the past month. SBUX is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note SBUX's current valuation metrics, including its Forward P/E ratio of 24.97. This represents a premium compared to its industry's average Forward P/E of 23.8.
Investors should also note that SBUX has a PEG ratio of 1.85 right now. 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 was holding an average PEG ratio of 1.85 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 151, putting it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow SBUX in the coming trading sessions, be sure to utilize Zacks.com.
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Starbucks (SBUX) Gains But Lags Market: What You Should Know
Starbucks (SBUX - Free Report) closed at $66.82 in the latest trading session, marking a +1.12% move from the prior day. This move lagged the S&P 500's daily gain of 2.3%. Meanwhile, the Dow gained 2.5%, and the Nasdaq, a tech-heavy index, added 2.95%.
Prior to today's trading, shares of the coffee chain had gained 12.78% over the past month. This has outpaced the Retail-Wholesale sector's gain of 1.21% and the S&P 500's gain of 1.21% in that time.
Wall Street will be looking for positivity from SBUX as it approaches its next earnings report date. This 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.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $2.65 per share and revenue of $26.12 billion. These results would represent year-over-year changes of +9.5% and +5.65%, respectively.
Any recent changes to analyst estimates for SBUX should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.81% higher within the past month. SBUX is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note SBUX's current valuation metrics, including its Forward P/E ratio of 24.97. This represents a premium compared to its industry's average Forward P/E of 23.8.
Investors should also note that SBUX has a PEG ratio of 1.85 right now. 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 was holding an average PEG ratio of 1.85 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 151, putting it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow SBUX in the coming trading sessions, be sure to utilize Zacks.com.