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Starbucks (SBUX) Stock Sinks As Market Gains: What You Should Know
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Starbucks (SBUX - Free Report) closed the most recent trading day at $102.50, moving -0.81% from the previous trading session. This change lagged the S&P 500's 0.14% gain on the day. Elsewhere, the Dow lost 0.18%, while the tech-heavy Nasdaq added 1.54%.
Coming into today, shares of the coffee chain had lost 3.26% in the past month. In that same time, the Retail-Wholesale sector lost 6.23%, while the S&P 500 lost 4.07%.
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 $0.64 per share. This would mark year-over-year growth of 8.47%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.41 billion, up 10.13% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.41 per share and revenue of $35.89 billion. These totals would mark changes of +15.2% and +11.29%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Starbucks. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% higher. Starbucks is currently a Zacks Rank #3 (Hold).
In terms of valuation, Starbucks is currently trading at a Forward P/E ratio of 30.35. Its industry sports an average Forward P/E of 21.97, so we one might conclude that Starbucks is trading at a premium comparatively.
Investors should also note that SBUX has a PEG ratio of 1.76 right now. 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 1.95 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 72, putting it in the top 29% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Starbucks (SBUX) Stock Sinks As Market Gains: What You Should Know
Starbucks (SBUX - Free Report) closed the most recent trading day at $102.50, moving -0.81% from the previous trading session. This change lagged the S&P 500's 0.14% gain on the day. Elsewhere, the Dow lost 0.18%, while the tech-heavy Nasdaq added 1.54%.
Coming into today, shares of the coffee chain had lost 3.26% in the past month. In that same time, the Retail-Wholesale sector lost 6.23%, while the S&P 500 lost 4.07%.
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 $0.64 per share. This would mark year-over-year growth of 8.47%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.41 billion, up 10.13% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.41 per share and revenue of $35.89 billion. These totals would mark changes of +15.2% and +11.29%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Starbucks. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% higher. Starbucks is currently a Zacks Rank #3 (Hold).
In terms of valuation, Starbucks is currently trading at a Forward P/E ratio of 30.35. Its industry sports an average Forward P/E of 21.97, so we one might conclude that Starbucks is trading at a premium comparatively.
Investors should also note that SBUX has a PEG ratio of 1.76 right now. 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 1.95 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 72, putting it in the top 29% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.