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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 $80.17, moving -1.29% from the previous trading session. This change lagged the S&P 500's daily loss of 0.06%. At the same time, the Dow added 0.72%, and the tech-heavy Nasdaq gained 0.39%.
Heading into today, shares of the coffee chain had lost 7.59% over the past month, lagging the Retail-Wholesale sector's loss of 1.67% and the S&P 500's gain of 0.17% in that time.
Starbucks will be looking to display strength as it nears its next earnings release, which is expected to be May 3, 2022. In that report, analysts expect Starbucks to post earnings of $0.60 per share. This would mark a year-over-year decline of 3.23%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.63 billion, up 14.38% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.31 per share and revenue of $32.72 billion, which would represent changes of +2.16% and +12.61%, respectively, from the prior year.
Any recent changes to analyst estimates for Starbucks should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 1.17% lower within the past month. Starbucks is currently a Zacks Rank #3 (Hold).
Digging into valuation, Starbucks currently has a Forward P/E ratio of 24.55. For comparison, its industry has an average Forward P/E of 21.25, which means Starbucks is trading at a premium to the group.
We can also see that SBUX currently has a PEG ratio of 2.03. 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. 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 168, putting it in the bottom 34% 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 $80.17, moving -1.29% from the previous trading session. This change lagged the S&P 500's daily loss of 0.06%. At the same time, the Dow added 0.72%, and the tech-heavy Nasdaq gained 0.39%.
Heading into today, shares of the coffee chain had lost 7.59% over the past month, lagging the Retail-Wholesale sector's loss of 1.67% and the S&P 500's gain of 0.17% in that time.
Starbucks will be looking to display strength as it nears its next earnings release, which is expected to be May 3, 2022. In that report, analysts expect Starbucks to post earnings of $0.60 per share. This would mark a year-over-year decline of 3.23%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.63 billion, up 14.38% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.31 per share and revenue of $32.72 billion, which would represent changes of +2.16% and +12.61%, respectively, from the prior year.
Any recent changes to analyst estimates for Starbucks should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 1.17% lower within the past month. Starbucks is currently a Zacks Rank #3 (Hold).
Digging into valuation, Starbucks currently has a Forward P/E ratio of 24.55. For comparison, its industry has an average Forward P/E of 21.25, which means Starbucks is trading at a premium to the group.
We can also see that SBUX currently has a PEG ratio of 2.03. 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. 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 168, putting it in the bottom 34% 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.