Starbucks (SBUX - Free Report) closed the most recent trading day at $85.35, moving -0.79% from the previous trading session. This move lagged the S&P 500's daily gain of 0.69%. At the same time, the Dow added 0.22%, and the tech-heavy Nasdaq gained 0.91%.
Coming into today, shares of the coffee chain had lost 6.04% in the past month. In that same time, the Retail-Wholesale sector lost 1.18%, while the S&P 500 lost 0.61%.
SBUX will be looking to display strength as it nears its next earnings release, which is expected to be October 30, 2019. On that day, SBUX is projected to report earnings of $0.70 per share, which would represent year-over-year growth of 12.9%. Meanwhile, our latest consensus estimate is calling for revenue of $6.63 billion, up 5.18% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for SBUX. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection has moved 1.01% lower. SBUX is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, SBUX is holding a Forward P/E ratio of 27.89. For comparison, its industry has an average Forward P/E of 21.6, which means SBUX is trading at a premium to the group.
Investors should also note that SBUX has a PEG ratio of 2.1 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.03 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 149, which puts it in the bottom 42% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.