Starbucks (SBUX - Free Report) closed at $75.06 in the latest trading session, marking a -0.19% move from the prior day. This change was narrower than the S&P 500's 0.61% loss on the day. Meanwhile, the Dow lost 0.72%, and the Nasdaq, a tech-heavy index, lost 0.56%.
Prior to today's trading, shares of the coffee chain had gained 7.92% over the past month. This has outpaced the Retail-Wholesale sector's gain of 6.68% and the S&P 500's gain of 5.68% in that time.
SBUX will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.56, up 5.66% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.31 billion, up 4.54% from the year-ago period.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $2.72 per share and revenue of $26.28 billion. These results would represent year-over-year changes of +12.4% and +6.33%, respectively.
Investors should also note any recent changes to analyst estimates for SBUX. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.07% higher. SBUX is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, SBUX is currently trading at a Forward P/E ratio of 27.62. This valuation marks a premium compared to its industry's average Forward P/E of 22.01.
Also, we should mention that SBUX has a PEG ratio of 2.15. 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 2.05 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 99, putting it in the top 39% 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.