Starbucks (SBUX - Free Report) closed at $84.57 in the latest trading session, marking a -1.01% move from the prior day. This move lagged the S&P 500's daily loss of 0.86%. At the same time, the Dow lost 0.96%, and the tech-heavy Nasdaq lost 1.13%.
Coming into today, shares of the coffee chain had gained 1.03% in the past month. In that same time, the Retail-Wholesale sector gained 2.75%, while the S&P 500 gained 3.66%.
Investors will be hoping for strength from SBUX as it approaches its next earnings release. In that report, analysts expect SBUX to post earnings of $0.75 per share. This would mark no growth from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.08 billion, up 6.74% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.05 per share and revenue of $28.38 billion. These totals would mark changes of +7.77% and +7.06%, respectively, from last year.
Any recent changes to analyst estimates for SBUX should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.7% lower. SBUX is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, SBUX currently has a Forward P/E ratio of 28.04. Its industry sports an average Forward P/E of 23.46, so we one might conclude that SBUX is trading at a premium comparatively.
Investors should also note that SBUX has a PEG ratio of 2.12 right now. 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 2.21 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 70, putting it in the top 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.