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Starbucks (SBUX) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Starbucks (SBUX - Free Report) closed at $95.28, marking a +0.19% move from the previous day. This change outpaced the S&P 500's 0.14% gain on the day. Elsewhere, the Dow gained 0.22%, while the tech-heavy Nasdaq added 0.09%.
Heading into today, shares of the coffee chain had lost 6.45% over the past month, lagging the Retail-Wholesale sector's loss of 2.45% and the S&P 500's loss of 1.27% in that time.
Starbucks will be looking to display strength as it nears its next earnings release. On that day, Starbucks is projected to report earnings of $0.96 per share, which would represent year-over-year growth of 18.52%. Our most recent consensus estimate is calling for quarterly revenue of $9.23 billion, up 9.67% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.45 per share and revenue of $35.83 billion, which would represent changes of +16.55% and +11.1%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Starbucks. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% lower. Starbucks is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Starbucks currently has a Forward P/E ratio of 27.55. This represents a premium compared to its industry's average Forward P/E of 22.04.
Also, we should mention that SBUX has a PEG ratio of 1.67. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Restaurants industry currently had an average PEG ratio of 1.82 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 54, which puts it in the top 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Starbucks (SBUX) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Starbucks (SBUX - Free Report) closed at $95.28, marking a +0.19% move from the previous day. This change outpaced the S&P 500's 0.14% gain on the day. Elsewhere, the Dow gained 0.22%, while the tech-heavy Nasdaq added 0.09%.
Heading into today, shares of the coffee chain had lost 6.45% over the past month, lagging the Retail-Wholesale sector's loss of 2.45% and the S&P 500's loss of 1.27% in that time.
Starbucks will be looking to display strength as it nears its next earnings release. On that day, Starbucks is projected to report earnings of $0.96 per share, which would represent year-over-year growth of 18.52%. Our most recent consensus estimate is calling for quarterly revenue of $9.23 billion, up 9.67% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.45 per share and revenue of $35.83 billion, which would represent changes of +16.55% and +11.1%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Starbucks. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% lower. Starbucks is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Starbucks currently has a Forward P/E ratio of 27.55. This represents a premium compared to its industry's average Forward P/E of 22.04.
Also, we should mention that SBUX has a PEG ratio of 1.67. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Restaurants industry currently had an average PEG ratio of 1.82 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 54, which puts it in the top 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.