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Starbucks (SBUX) Stock Sinks As Market Gains: What You Should Know
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Starbucks (SBUX - Free Report) closed the most recent trading day at $77.99, moving -0.7% from the previous trading session. This change lagged the S&P 500's daily gain of 0.48%. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, added 1.29%.
SBUX will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$0.24, down 130.77% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.41 billion, down 35.31% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.25 per share and revenue of $23.52 billion. These totals would mark changes of -55.83% and -11.26%, respectively, from last 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 12.23% lower within the past month. SBUX is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note SBUX's current valuation metrics, including its Forward P/E ratio of 62.73. This valuation marks a premium compared to its industry's average Forward P/E of 40.11.
Also, we should mention that SBUX has a PEG ratio of 4.56. 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. The Retail - Restaurants was holding an average PEG ratio of 4.56 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 119, which puts it in the top 47% 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.
To follow SBUX in the coming trading sessions, be sure to utilize Zacks.com.
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Starbucks (SBUX) Stock Sinks As Market Gains: What You Should Know
Starbucks (SBUX - Free Report) closed the most recent trading day at $77.99, moving -0.7% from the previous trading session. This change lagged the S&P 500's daily gain of 0.48%. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, added 1.29%.
SBUX will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$0.24, down 130.77% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.41 billion, down 35.31% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.25 per share and revenue of $23.52 billion. These totals would mark changes of -55.83% and -11.26%, respectively, from last 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 12.23% lower within the past month. SBUX is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note SBUX's current valuation metrics, including its Forward P/E ratio of 62.73. This valuation marks a premium compared to its industry's average Forward P/E of 40.11.
Also, we should mention that SBUX has a PEG ratio of 4.56. 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. The Retail - Restaurants was holding an average PEG ratio of 4.56 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 119, which puts it in the top 47% 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.
To follow SBUX in the coming trading sessions, be sure to utilize Zacks.com.