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Starbucks (SBUX) Stock Sinks As Market Gains: What You Should Know
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Starbucks (SBUX - Free Report) closed at $101.21 in the latest trading session, marking a -0.2% move from the prior day. This change lagged the S&P 500's 0.28% gain on the day. At the same time, the Dow added 0.35%, and the tech-heavy Nasdaq gained 0.5%.
Coming into today, shares of the coffee chain had gained 5.77% in the past month. In that same time, the Retail-Wholesale sector lost 0.89%, while the S&P 500 gained 5.42%.
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 $0.56 per share, which would represent a year-over-year decline of 29.11%. Our most recent consensus estimate is calling for quarterly revenue of $6.95 billion, down 2.03% from the year-ago period.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $2.79 per share and revenue of $28.36 billion. These results would represent year-over-year changes of +138.46% and +20.59%, respectively.
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. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 0.15% lower. SBUX currently has a Zacks Rank of #3 (Hold).
In terms of valuation, SBUX is currently trading at a Forward P/E ratio of 36.29. Its industry sports an average Forward P/E of 33.57, so we one might conclude that SBUX is trading at a premium comparatively.
Investors should also note that SBUX has a PEG ratio of 2.64 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 3.1 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 117, which puts it in the top 46% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Starbucks (SBUX) Stock Sinks As Market Gains: What You Should Know
Starbucks (SBUX - Free Report) closed at $101.21 in the latest trading session, marking a -0.2% move from the prior day. This change lagged the S&P 500's 0.28% gain on the day. At the same time, the Dow added 0.35%, and the tech-heavy Nasdaq gained 0.5%.
Coming into today, shares of the coffee chain had gained 5.77% in the past month. In that same time, the Retail-Wholesale sector lost 0.89%, while the S&P 500 gained 5.42%.
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 $0.56 per share, which would represent a year-over-year decline of 29.11%. Our most recent consensus estimate is calling for quarterly revenue of $6.95 billion, down 2.03% from the year-ago period.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $2.79 per share and revenue of $28.36 billion. These results would represent year-over-year changes of +138.46% and +20.59%, respectively.
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. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 0.15% lower. SBUX currently has a Zacks Rank of #3 (Hold).
In terms of valuation, SBUX is currently trading at a Forward P/E ratio of 36.29. Its industry sports an average Forward P/E of 33.57, so we one might conclude that SBUX is trading at a premium comparatively.
Investors should also note that SBUX has a PEG ratio of 2.64 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 3.1 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 117, which puts it in the top 46% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.