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Starbucks (SBUX) Gains But Lags Market: What You Should Know
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Starbucks (SBUX - Free Report) closed the most recent trading day at $87.66, moving +0.29% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.24%. Elsewhere, the Dow gained 1.23%, while the tech-heavy Nasdaq added 0.15%.
Prior to today's trading, shares of the coffee chain had lost 8.16% over the past month. This has lagged the Retail-Wholesale sector's loss of 1.42% and the S&P 500's loss of 2.45% in that time.
Wall Street will be looking for positivity from Starbucks as it approaches its next earnings report date. In that report, analysts expect Starbucks to post earnings of $0.62 per share. This would mark no growth from the year-ago period. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.64 billion, up 14.57% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.34 per share and revenue of $32.79 billion, which would represent changes of +3.09% and +12.84%, respectively, from the prior year.
Any recent changes to analyst estimates for Starbucks should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 0.21% lower within the past month. Starbucks currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Starbucks has a Forward P/E ratio of 26.17 right now. Its industry sports an average Forward P/E of 20.44, so we one might conclude that Starbucks is trading at a premium comparatively.
Also, we should mention that SBUX has a PEG ratio of 2.11. 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 2.1 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 172, putting it in the bottom 33% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Starbucks (SBUX) Gains But Lags Market: What You Should Know
Starbucks (SBUX - Free Report) closed the most recent trading day at $87.66, moving +0.29% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.24%. Elsewhere, the Dow gained 1.23%, while the tech-heavy Nasdaq added 0.15%.
Prior to today's trading, shares of the coffee chain had lost 8.16% over the past month. This has lagged the Retail-Wholesale sector's loss of 1.42% and the S&P 500's loss of 2.45% in that time.
Wall Street will be looking for positivity from Starbucks as it approaches its next earnings report date. In that report, analysts expect Starbucks to post earnings of $0.62 per share. This would mark no growth from the year-ago period. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.64 billion, up 14.57% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.34 per share and revenue of $32.79 billion, which would represent changes of +3.09% and +12.84%, respectively, from the prior year.
Any recent changes to analyst estimates for Starbucks should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 0.21% lower within the past month. Starbucks currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Starbucks has a Forward P/E ratio of 26.17 right now. Its industry sports an average Forward P/E of 20.44, so we one might conclude that Starbucks is trading at a premium comparatively.
Also, we should mention that SBUX has a PEG ratio of 2.11. 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 2.1 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 172, putting it in the bottom 33% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.