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Starbucks (SBUX) Gains But Lags Market: What You Should Know
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Starbucks (SBUX - Free Report) closed at $106.30 in the latest trading session, marking a +0.28% move from the prior day. This change lagged the S&P 500's 1.29% gain on the day. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 10.96%.
Coming into today, shares of the coffee chain had gained 3.81% in the past month. In that same time, the Retail-Wholesale sector gained 2.19%, while the S&P 500 lost 0.23%.
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 $0.76 per share, which would represent year-over-year growth of 5.56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.8 billion, up 9.29% from the year-ago period.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $3.42 per share and revenue of $36 billion. These results would represent year-over-year changes of +15.54% and +11.61%, respectively.
It is also important to note the recent changes to analyst estimates for Starbucks. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.1% higher. Starbucks is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Starbucks is currently trading at a Forward P/E ratio of 30.99. Its industry sports an average Forward P/E of 21.76, so we one might conclude that Starbucks is trading at a premium comparatively.
Meanwhile, SBUX's PEG ratio is currently 2.24. 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. The Retail - Restaurants industry currently had an average PEG ratio of 1.96 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 197, putting it in the bottom 22% 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
Starbucks (SBUX - Free Report) closed at $106.30 in the latest trading session, marking a +0.28% move from the prior day. This change lagged the S&P 500's 1.29% gain on the day. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 10.96%.
Coming into today, shares of the coffee chain had gained 3.81% in the past month. In that same time, the Retail-Wholesale sector gained 2.19%, while the S&P 500 lost 0.23%.
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 $0.76 per share, which would represent year-over-year growth of 5.56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.8 billion, up 9.29% from the year-ago period.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $3.42 per share and revenue of $36 billion. These results would represent year-over-year changes of +15.54% and +11.61%, respectively.
It is also important to note the recent changes to analyst estimates for Starbucks. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.1% higher. Starbucks is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Starbucks is currently trading at a Forward P/E ratio of 30.99. Its industry sports an average Forward P/E of 21.76, so we one might conclude that Starbucks is trading at a premium comparatively.
Meanwhile, SBUX's PEG ratio is currently 2.24. 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. The Retail - Restaurants industry currently had an average PEG ratio of 1.96 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 197, putting it in the bottom 22% 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.