We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Starbucks (SBUX) Gains As Market Dips: What You Should Know
Read MoreHide Full Article
Starbucks (SBUX - Free Report) closed at $116.97 in the latest trading session, marking a +0.63% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.26%. Elsewhere, the Dow lost 0.16%, while the tech-heavy Nasdaq lost 0.04%.
Heading into today, shares of the coffee chain had gained 4.33% over the past month, outpacing the Retail-Wholesale sector's gain of 0.24% and lagging the S&P 500's gain of 4.82% in that time.
Investors will be hoping for strength from Starbucks as it approaches its next earnings release. The company is expected to report EPS of $0.80, up 31.15% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.99 billion, up 18.44% from the year-ago period.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $3.45 per share and revenue of $32.68 billion. These results would represent year-over-year changes of +6.48% and +12.45%, respectively.
It is also important to note the recent changes to analyst estimates for Starbucks. 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.
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.
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 0.56% lower. Starbucks currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Starbucks is holding a Forward P/E ratio of 33.72. This represents a premium compared to its industry's average Forward P/E of 23.74.
It is also worth noting that SBUX currently has a PEG ratio of 1.7. 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 2.1 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 222, putting it in the bottom 13% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Starbucks (SBUX) Gains As Market Dips: What You Should Know
Starbucks (SBUX - Free Report) closed at $116.97 in the latest trading session, marking a +0.63% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.26%. Elsewhere, the Dow lost 0.16%, while the tech-heavy Nasdaq lost 0.04%.
Heading into today, shares of the coffee chain had gained 4.33% over the past month, outpacing the Retail-Wholesale sector's gain of 0.24% and lagging the S&P 500's gain of 4.82% in that time.
Investors will be hoping for strength from Starbucks as it approaches its next earnings release. The company is expected to report EPS of $0.80, up 31.15% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.99 billion, up 18.44% from the year-ago period.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $3.45 per share and revenue of $32.68 billion. These results would represent year-over-year changes of +6.48% and +12.45%, respectively.
It is also important to note the recent changes to analyst estimates for Starbucks. 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.
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.
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 0.56% lower. Starbucks currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Starbucks is holding a Forward P/E ratio of 33.72. This represents a premium compared to its industry's average Forward P/E of 23.74.
It is also worth noting that SBUX currently has a PEG ratio of 1.7. 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 2.1 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 222, putting it in the bottom 13% 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.