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Starbucks (SBUX) Gains As Market Dips: What You Should Know
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Starbucks (SBUX - Free Report) closed the most recent trading day at $84.52, moving +1.9% from the previous trading session. This change outpaced the S&P 500's 0.41% loss on the day.
Heading into today, shares of the coffee chain had lost 3.24% over the past month, outpacing the Retail-Wholesale sector's loss of 4.15% and the S&P 500's loss of 5.13% in that time.
Investors will be hoping for strength from Starbucks as it approaches its next earnings release. The company is expected to report EPS of $0.74, down 26% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.42 billion, up 3.32% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.88 per share and revenue of $32.25 billion, which would represent changes of -11.11% and +10.99%, respectively, from the prior year.
It is also important to note the 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.17% lower. Starbucks currently has a Zacks Rank of #3 (Hold).
Investors should also note Starbucks's current valuation metrics, including its Forward P/E ratio of 28.78. Its industry sports an average Forward P/E of 19.11, so we one might conclude that Starbucks is trading at a premium comparatively.
Meanwhile, SBUX's PEG ratio is currently 2.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.08 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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 the most recent trading day at $84.52, moving +1.9% from the previous trading session. This change outpaced the S&P 500's 0.41% loss on the day.
Heading into today, shares of the coffee chain had lost 3.24% over the past month, outpacing the Retail-Wholesale sector's loss of 4.15% and the S&P 500's loss of 5.13% in that time.
Investors will be hoping for strength from Starbucks as it approaches its next earnings release. The company is expected to report EPS of $0.74, down 26% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.42 billion, up 3.32% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.88 per share and revenue of $32.25 billion, which would represent changes of -11.11% and +10.99%, respectively, from the prior year.
It is also important to note the 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.17% lower. Starbucks currently has a Zacks Rank of #3 (Hold).
Investors should also note Starbucks's current valuation metrics, including its Forward P/E ratio of 28.78. Its industry sports an average Forward P/E of 19.11, so we one might conclude that Starbucks is trading at a premium comparatively.
Meanwhile, SBUX's PEG ratio is currently 2.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.08 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.