In the latest trading session, Starbucks (SBUX - Free Report) closed at $65.81, marking a +1.43% move from the previous day. This change outpaced the S&P 500's 1.15% gain on the day. At the same time, the Dow added 2.39%, and the tech-heavy Nasdaq lost 0.45%.
Heading into today, shares of the coffee chain had lost 21.06% over the past month, lagging the Retail-Wholesale sector's loss of 15.08% and outpacing the S&P 500's loss of 24.07% in that time.
Investors will be hoping for strength from SBUX as it approaches its next earnings release. On that day, SBUX is projected to report earnings of $0.50 per share, which would represent a year-over-year decline of 16.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.24 billion, down 1% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.82 per share and revenue of $27.04 billion. These totals would mark changes of -0.35% and +1.99%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for SBUX. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.64% lower. SBUX currently has a Zacks Rank of #3 (Hold).
Digging into valuation, SBUX currently has a Forward P/E ratio of 22.98. This represents a premium compared to its industry's average Forward P/E of 12.47.
Investors should also note that SBUX has a PEG ratio of 1.67 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.66 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 142, which puts it in the bottom 45% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.