Starbucks (SBUX - Free Report) closed the most recent trading day at $70.03, moving +0.5% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.3%. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq added 0.44%.
Heading into today, shares of the coffee chain had lost 0.44% over the past month, lagging the Retail-Wholesale sector's gain of 2.95% and the S&P 500's gain of 2.91% in that time.
Wall Street will be looking for positivity from SBUX as it approaches its next earnings report date. In that report, analysts expect SBUX to post earnings of $0.56 per share. This would mark year-over-year growth of 5.66%. Our most recent consensus estimate is calling for quarterly revenue of $6.31 billion, up 4.54% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.72 per share and revenue of $26.28 billion. These totals would mark changes of +12.4% and +6.33%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for SBUX. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant. SBUX is currently a Zacks Rank #2 (Buy).
Looking at its valuation, SBUX is holding a Forward P/E ratio of 25.65. This valuation marks a premium compared to its industry's average Forward P/E of 22.39.
Investors should also note that SBUX has a PEG ratio of 2 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 138, putting it in the bottom 46% 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.
To follow SBUX in the coming trading sessions, be sure to utilize Zacks.com.