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Starbucks (SBUX) Stock Sinks As Market Gains: What You Should Know
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Starbucks (SBUX - Free Report) closed at $78.86 in the latest trading session, marking a -0.83% move from the prior day. This change lagged the S&P 500's daily gain of 0.36%. Elsewhere, the Dow gained 0.23%, while the tech-heavy Nasdaq lost 0.1%.
Heading into today, shares of the coffee chain had gained 0.06% over the past month, outpacing the Retail-Wholesale sector's loss of 2.34% and the S&P 500's loss of 6.59% 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%. Our most recent consensus estimate is calling for quarterly revenue of $8.21 billion, up 9.5% from the year-ago period.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $2.89 per share and revenue of $32.38 billion. These results would represent year-over-year changes of -10.8% and +11.42%, respectively.
Investors might also notice recent changes to analyst estimates for Starbucks. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Starbucks is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, Starbucks currently has a Forward P/E ratio of 27.47. For comparison, its industry has an average Forward P/E of 18.84, which means Starbucks is trading at a premium to the group.
We can also see that SBUX currently has a PEG ratio of 2.34. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.8 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 220, which puts it in the bottom 13% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Starbucks (SBUX) Stock Sinks As Market Gains: What You Should Know
Starbucks (SBUX - Free Report) closed at $78.86 in the latest trading session, marking a -0.83% move from the prior day. This change lagged the S&P 500's daily gain of 0.36%. Elsewhere, the Dow gained 0.23%, while the tech-heavy Nasdaq lost 0.1%.
Heading into today, shares of the coffee chain had gained 0.06% over the past month, outpacing the Retail-Wholesale sector's loss of 2.34% and the S&P 500's loss of 6.59% 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%. Our most recent consensus estimate is calling for quarterly revenue of $8.21 billion, up 9.5% from the year-ago period.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $2.89 per share and revenue of $32.38 billion. These results would represent year-over-year changes of -10.8% and +11.42%, respectively.
Investors might also notice recent changes to analyst estimates for Starbucks. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Starbucks is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, Starbucks currently has a Forward P/E ratio of 27.47. For comparison, its industry has an average Forward P/E of 18.84, which means Starbucks is trading at a premium to the group.
We can also see that SBUX currently has a PEG ratio of 2.34. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.8 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 220, which puts it in the bottom 13% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.