In the latest trading session, Starbucks (SBUX - Free Report) closed at $76.06, marking a -0.14% move from the previous day. This move was narrower than the S&P 500's daily loss of 1.32%. Elsewhere, the Dow lost 1.41%, while the tech-heavy Nasdaq lost 1.51%.
Heading into today, shares of the coffee chain had lost 1.68% over the past month, outpacing the Retail-Wholesale sector's loss of 7.4% and the S&P 500's loss of 5.09% in that time.
Wall Street will be looking for positivity from SBUX as it approaches its next earnings report date. The company is expected to report EPS of $0.73, up 17.74% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.68 billion, up 5.82% from the year-ago period.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $2.78 per share and revenue of $26.24 billion. These results would represent year-over-year changes of +14.88% and +6.16%, respectively.
It is also important to note the recent changes to analyst estimates for SBUX. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.19% lower. SBUX is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, SBUX is currently trading at a Forward P/E ratio of 27.44. This represents a premium compared to its industry's average Forward P/E of 22.03.
It is also worth noting that SBUX currently has a PEG ratio of 2.14. 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 industry currently had an average PEG ratio of 2.04 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 186, which puts it in the bottom 28% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.