We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Starbucks (SBUX) Gains As Market Dips: What You Should Know
Read MoreHide Full Article
Starbucks (SBUX - Free Report) closed the most recent trading day at $87.06, moving +0.03% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.75%. At the same time, the Dow lost 0.32%, and the tech-heavy Nasdaq lost 0.07%.
Prior to today's trading, shares of the coffee chain had lost 1.87% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 8.96% and the S&P 500's loss of 8.4% in that time.
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 $0.73 per share. This would mark a year-over-year decline of 27%. Meanwhile, our latest consensus estimate is calling for revenue of $8.43 billion, up 3.47% from the prior-year quarter.
Investors should also note any 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. 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, 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 has moved 0.52% lower. Starbucks currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Starbucks is holding a Forward P/E ratio of 25.75. This valuation marks a premium compared to its industry's average Forward P/E of 19.26.
Meanwhile, SBUX's PEG ratio is currently 2. 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 1.78 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 132, putting it in the bottom 48% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Starbucks (SBUX) Gains As Market Dips: What You Should Know
Starbucks (SBUX - Free Report) closed the most recent trading day at $87.06, moving +0.03% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.75%. At the same time, the Dow lost 0.32%, and the tech-heavy Nasdaq lost 0.07%.
Prior to today's trading, shares of the coffee chain had lost 1.87% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 8.96% and the S&P 500's loss of 8.4% in that time.
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 $0.73 per share. This would mark a year-over-year decline of 27%. Meanwhile, our latest consensus estimate is calling for revenue of $8.43 billion, up 3.47% from the prior-year quarter.
Investors should also note any 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. 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, 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 has moved 0.52% lower. Starbucks currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Starbucks is holding a Forward P/E ratio of 25.75. This valuation marks a premium compared to its industry's average Forward P/E of 19.26.
Meanwhile, SBUX's PEG ratio is currently 2. 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 1.78 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 132, putting it in the bottom 48% 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.