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Starbucks (SBUX) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, Starbucks (SBUX - Free Report) closed at $91.53, marking a -1.34% move from the previous day. This change lagged the S&P 500's 0.53% loss on the day. Elsewhere, the Dow lost 0.29%, while the tech-heavy Nasdaq lost 0.1%.
Prior to today's trading, shares of the coffee chain had lost 5.08% over the past month. This has lagged the Retail-Wholesale sector's loss of 3.16% and the S&P 500's loss of 4.24% in that time.
Wall Street will be looking for positivity from Starbucks as it approaches its next earnings report date. The company is expected to report EPS of $0.62, unchanged from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.64 billion, up 14.57% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.35 per share and revenue of $32.79 billion. These totals would mark changes of +3.4% and +12.84%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Starbucks. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Within the past 30 days, our consensus EPS projection has moved 2.8% lower. Starbucks is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, Starbucks is holding a Forward P/E ratio of 27.71. This valuation marks a premium compared to its industry's average Forward P/E of 22.75.
We can also see that SBUX currently has a PEG ratio of 2.23. 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 industry currently had an average PEG ratio of 1.99 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 187, putting it in the bottom 27% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Starbucks (SBUX) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Starbucks (SBUX - Free Report) closed at $91.53, marking a -1.34% move from the previous day. This change lagged the S&P 500's 0.53% loss on the day. Elsewhere, the Dow lost 0.29%, while the tech-heavy Nasdaq lost 0.1%.
Prior to today's trading, shares of the coffee chain had lost 5.08% over the past month. This has lagged the Retail-Wholesale sector's loss of 3.16% and the S&P 500's loss of 4.24% in that time.
Wall Street will be looking for positivity from Starbucks as it approaches its next earnings report date. The company is expected to report EPS of $0.62, unchanged from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.64 billion, up 14.57% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.35 per share and revenue of $32.79 billion. These totals would mark changes of +3.4% and +12.84%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Starbucks. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Within the past 30 days, our consensus EPS projection has moved 2.8% lower. Starbucks is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, Starbucks is holding a Forward P/E ratio of 27.71. This valuation marks a premium compared to its industry's average Forward P/E of 22.75.
We can also see that SBUX currently has a PEG ratio of 2.23. 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 industry currently had an average PEG ratio of 1.99 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 187, putting it in the bottom 27% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.