In the latest trading session, Starbucks (SBUX - Free Report) closed at $73.59, marking a +0.15% move from the previous day. This move lagged the S&P 500's daily gain of 1.54%. Meanwhile, the Dow gained 0.85%, and the Nasdaq, a tech-heavy index, added 1.87%.
Prior to today's trading, shares of the coffee chain had lost 6.18% over the past month. This has lagged the Retail-Wholesale sector's gain of 4.13% and the S&P 500's gain of 0.57% in that time.
SBUX will be looking to display strength as it nears its next earnings release. In that report, analysts expect SBUX to post earnings of $0.31 per share. This would mark a year-over-year decline of 60.26%. Our most recent consensus estimate is calling for quarterly revenue of $4.13 billion, down 39.52% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.80 per share and revenue of $23.14 billion. These totals would mark changes of -71.73% and -12.69%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for SBUX. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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. Within the past 30 days, our consensus EPS projection has moved 35.76% 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 91.36. This valuation marks a premium compared to its industry's average Forward P/E of 41.09.
We can also see that SBUX currently has a PEG ratio of 6.64. 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. SBUX's industry had an average PEG ratio of 4.79 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 45, which puts it in the top 18% 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.