Starbucks (SBUX - Free Report) closed the most recent trading day at $82.93, moving +0.68% from the previous trading session. This change outpaced the S&P 500's 0.2% loss on the day. At the same time, the Dow lost 0.17%, and the tech-heavy Nasdaq lost 0.38%.
Heading into today, shares of the coffee chain had gained 6.89% over the past month, outpacing the Retail-Wholesale sector's loss of 1.15% and the S&P 500's gain of 0.33% in that time.
SBUX will be looking to display strength as it nears its next earnings release. In that report, analysts expect SBUX to post earnings of $0.73 per share. This would mark year-over-year growth of 17.74%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.68 billion, up 5.82% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.78 per share and revenue of $26.24 billion, which would represent changes of +14.88% and +6.16%, respectively, from the prior year.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0% lower. SBUX currently has a Zacks Rank of #3 (Hold).
Investors should also note SBUX's current valuation metrics, including its Forward P/E ratio of 29.62. This represents a premium compared to its industry's average Forward P/E of 21.85.
We can also see that SBUX currently has a PEG ratio of 2.31. 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 2.13 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 108, which puts it in the top 43% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.