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Starbucks (SBUX) Gains But Lags Market: What You Should Know
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In the latest trading session, Starbucks (SBUX - Free Report) closed at $88.96, marking a +0.07% move from the previous day. This move lagged the S&P 500's daily gain of 1.14%. Meanwhile, the Dow gained 1.12%, and the Nasdaq, a tech-heavy index, added 0.05%.
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 $0.73 per share, which would represent a year-over-year decline of 27%. Our most recent consensus estimate is calling for quarterly revenue of $8.44 billion, up 3.56% from the year-ago period.
Any recent changes to analyst estimates for Starbucks should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.34% lower. Starbucks is currently a Zacks Rank #3 (Hold).
In terms of valuation, Starbucks is currently trading at a Forward P/E ratio of 26.36. For comparison, its industry has an average Forward P/E of 20.89, which means Starbucks is trading at a premium to the group.
Also, we should mention that SBUX has a PEG ratio of 2.02. 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 1.88 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 35% 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) Gains But Lags Market: What You Should Know
In the latest trading session, Starbucks (SBUX - Free Report) closed at $88.96, marking a +0.07% move from the previous day. This move lagged the S&P 500's daily gain of 1.14%. Meanwhile, the Dow gained 1.12%, and the Nasdaq, a tech-heavy index, added 0.05%.
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 $0.73 per share, which would represent a year-over-year decline of 27%. Our most recent consensus estimate is calling for quarterly revenue of $8.44 billion, up 3.56% from the year-ago period.
Any recent changes to analyst estimates for Starbucks should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.34% lower. Starbucks is currently a Zacks Rank #3 (Hold).
In terms of valuation, Starbucks is currently trading at a Forward P/E ratio of 26.36. For comparison, its industry has an average Forward P/E of 20.89, which means Starbucks is trading at a premium to the group.
Also, we should mention that SBUX has a PEG ratio of 2.02. 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 1.88 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 35% 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.