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Starbucks (SBUX) Gains As Market Dips: What You Should Know
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Starbucks (SBUX - Free Report) closed at $78.91 in the latest trading session, marking a +0.56% move from the prior day. This change outpaced the S&P 500's 2.38% loss on the day. Meanwhile, the Dow lost 1.94%, and the Nasdaq, a tech-heavy index, lost 0.64%.
Prior to today's trading, shares of the coffee chain had gained 12% over the past month. This has outpaced the Retail-Wholesale sector's loss of 25.8% and the S&P 500's loss of 0.07% in that time.
Investors will be hoping for strength from Starbucks as it approaches its next earnings release. On that day, Starbucks is projected to report earnings of $0.78 per share, which would represent a year-over-year decline of 22.77%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.21 billion, up 9.5% from the year-ago period.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $2.92 per share and revenue of $32.38 billion. These results would represent year-over-year changes of -9.88% and +11.42%, respectively.
Any recent changes to analyst estimates for Starbucks should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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, 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 remained stagnant. Starbucks is currently sporting a Zacks Rank of #5 (Strong Sell).
Digging into valuation, Starbucks currently has a Forward P/E ratio of 26.85. This valuation marks a premium compared to its industry's average Forward P/E of 20.73.
It is also worth noting that SBUX currently has a PEG ratio of 2.29. 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 1.84 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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 As Market Dips: What You Should Know
Starbucks (SBUX - Free Report) closed at $78.91 in the latest trading session, marking a +0.56% move from the prior day. This change outpaced the S&P 500's 2.38% loss on the day. Meanwhile, the Dow lost 1.94%, and the Nasdaq, a tech-heavy index, lost 0.64%.
Prior to today's trading, shares of the coffee chain had gained 12% over the past month. This has outpaced the Retail-Wholesale sector's loss of 25.8% and the S&P 500's loss of 0.07% in that time.
Investors will be hoping for strength from Starbucks as it approaches its next earnings release. On that day, Starbucks is projected to report earnings of $0.78 per share, which would represent a year-over-year decline of 22.77%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.21 billion, up 9.5% from the year-ago period.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $2.92 per share and revenue of $32.38 billion. These results would represent year-over-year changes of -9.88% and +11.42%, respectively.
Any recent changes to analyst estimates for Starbucks should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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, 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 remained stagnant. Starbucks is currently sporting a Zacks Rank of #5 (Strong Sell).
Digging into valuation, Starbucks currently has a Forward P/E ratio of 26.85. This valuation marks a premium compared to its industry's average Forward P/E of 20.73.
It is also worth noting that SBUX currently has a PEG ratio of 2.29. 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 1.84 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.