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) Dips More Than Broader Markets: What You Should Know
Read MoreHide Full Article
In the latest trading session, Starbucks (SBUX - Free Report) closed at $106.75, marking a -0.45% move from the previous day. This move lagged the S&P 500's daily loss of 0.2%. Elsewhere, the Dow lost 1.14%, while the tech-heavy Nasdaq added 1.39%.
Prior to today's trading, shares of the coffee chain had gained 9.08% over the past month. This has outpaced the Retail-Wholesale sector's gain of 8.12% and the S&P 500's gain of 4.01% 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 $0.76 per share. This would mark year-over-year growth of 5.56%. Meanwhile, our latest consensus estimate is calling for revenue of $8.8 billion, up 9.29% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.42 per share and revenue of $36 billion. These totals would mark changes of +15.54% and +11.61%, respectively, from last year.
Any recent changes to analyst estimates for Starbucks should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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 currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Starbucks has a Forward P/E ratio of 31.35 right now. For comparison, its industry has an average Forward P/E of 21.89, which means Starbucks is trading at a premium to the group.
Investors should also note that SBUX has a PEG ratio of 2.26 right now. 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 2.06 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 211, putting it in the bottom 17% 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.
To follow SBUX in the coming trading sessions, be sure to utilize Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Starbucks (SBUX) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Starbucks (SBUX - Free Report) closed at $106.75, marking a -0.45% move from the previous day. This move lagged the S&P 500's daily loss of 0.2%. Elsewhere, the Dow lost 1.14%, while the tech-heavy Nasdaq added 1.39%.
Prior to today's trading, shares of the coffee chain had gained 9.08% over the past month. This has outpaced the Retail-Wholesale sector's gain of 8.12% and the S&P 500's gain of 4.01% 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 $0.76 per share. This would mark year-over-year growth of 5.56%. Meanwhile, our latest consensus estimate is calling for revenue of $8.8 billion, up 9.29% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.42 per share and revenue of $36 billion. These totals would mark changes of +15.54% and +11.61%, respectively, from last year.
Any recent changes to analyst estimates for Starbucks should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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 currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Starbucks has a Forward P/E ratio of 31.35 right now. For comparison, its industry has an average Forward P/E of 21.89, which means Starbucks is trading at a premium to the group.
Investors should also note that SBUX has a PEG ratio of 2.26 right now. 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 2.06 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 211, putting it in the bottom 17% 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.
To follow SBUX in the coming trading sessions, be sure to utilize Zacks.com.