In the latest trading session, Starbucks (SBUX - Free Report) closed at $85.85, marking a +1.11% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.91%. Elsewhere, the Dow gained 0.7%, while the tech-heavy Nasdaq added 1.02%.
Coming into today, shares of the coffee chain had lost 6.02% in the past month. In that same time, the Retail-Wholesale sector lost 4.73%, while the S&P 500 lost 2.74%.
SBUX will be looking to display strength as it nears its next earnings release. In that report, analysts expect SBUX to post earnings of $0.70 per share. This would mark year-over-year growth of 12.9%. Meanwhile, our latest consensus estimate is calling for revenue of $6.63 billion, up 5.11% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for SBUX. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.98% lower within the past month. SBUX is currently a Zacks Rank #3 (Hold).
In terms of valuation, SBUX is currently trading at a Forward P/E ratio of 27.47. This represents a premium compared to its industry's average Forward P/E of 21.91.
Investors should also note that SBUX has a PEG ratio of 2.07 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.04 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 38% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.