In the latest trading session, Starbucks (SBUX - Free Report) closed at $64.40, marking a +1.59% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.85%. At the same time, the Dow added 1.15%, and the tech-heavy Nasdaq gained 0.77%.
Prior to today's trading, shares of the coffee chain had lost 5.22% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 9.73% and the S&P 500's loss of 9.35% 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. On that day, SBUX is projected to report earnings of $0.59 per share, which would represent a year-over-year decline of 9.23%. Meanwhile, our latest consensus estimate is calling for revenue of $6.48 billion, up 6.76% from the prior-year quarter.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $2.64 per share and revenue of $26.13 billion. These results would represent year-over-year changes of +9.09% and +5.69%, respectively.
Investors might also notice recent changes to analyst estimates for SBUX. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.15% lower within the past month. SBUX is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, SBUX is holding a Forward P/E ratio of 23.99. This represents a premium compared to its industry's average Forward P/E of 22.49.
It is also worth noting that SBUX currently has a PEG ratio of 1.78. 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 was holding an average PEG ratio of 1.72 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 37% 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.