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Starbucks (SBUX) Dips More Than Broader Markets: What You Should Know
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Starbucks (SBUX - Free Report) closed the most recent trading day at $79.79, moving -1.1% from the previous trading session. This change lagged the S&P 500's daily loss of 0.34%. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, added 0.09%.
Coming into today, shares of the coffee chain had gained 1.75% in the past month. In that same time, the Retail-Wholesale sector gained 5.46%, while the S&P 500 gained 5.03%.
Investors will be hoping for strength from Starbucks as it approaches its next earnings release. In that report, analysts expect Starbucks to post earnings of $0.61 per share. This would mark a year-over-year decline of 1.61%. Meanwhile, our latest consensus estimate is calling for revenue of $7.63 billion, up 14.49% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.33 per share and revenue of $32.78 billion, which would represent changes of +2.78% and +12.79%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Starbucks. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. The Zacks Consensus EPS estimate has moved 0.28% lower within the past month. Starbucks is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Starbucks has a Forward P/E ratio of 24.22 right now. Its industry sports an average Forward P/E of 21.25, so we one might conclude that Starbucks is trading at a premium comparatively.
We can also see that SBUX currently has a PEG ratio of 1.95. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Restaurants industry currently had an average PEG ratio of 2.09 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 145, which puts it in the bottom 43% 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.
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Starbucks (SBUX) Dips More Than Broader Markets: What You Should Know
Starbucks (SBUX - Free Report) closed the most recent trading day at $79.79, moving -1.1% from the previous trading session. This change lagged the S&P 500's daily loss of 0.34%. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, added 0.09%.
Coming into today, shares of the coffee chain had gained 1.75% in the past month. In that same time, the Retail-Wholesale sector gained 5.46%, while the S&P 500 gained 5.03%.
Investors will be hoping for strength from Starbucks as it approaches its next earnings release. In that report, analysts expect Starbucks to post earnings of $0.61 per share. This would mark a year-over-year decline of 1.61%. Meanwhile, our latest consensus estimate is calling for revenue of $7.63 billion, up 14.49% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.33 per share and revenue of $32.78 billion, which would represent changes of +2.78% and +12.79%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Starbucks. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. The Zacks Consensus EPS estimate has moved 0.28% lower within the past month. Starbucks is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Starbucks has a Forward P/E ratio of 24.22 right now. Its industry sports an average Forward P/E of 21.25, so we one might conclude that Starbucks is trading at a premium comparatively.
We can also see that SBUX currently has a PEG ratio of 1.95. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Restaurants industry currently had an average PEG ratio of 2.09 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 145, which puts it in the bottom 43% 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.