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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 $97.16, marking a +0.24% move from the previous day. This move lagged the S&P 500's daily gain of 0.84%. Meanwhile, the Dow gained 0.96%, and the Nasdaq, a tech-heavy index, added 0.81%.
Coming into today, shares of the coffee chain had lost 2.07% in the past month. In that same time, the Retail-Wholesale sector lost 0.13%, while the S&P 500 gained 0.19%.
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 $0.96 per share. This would mark year-over-year growth of 18.52%. Meanwhile, our latest consensus estimate is calling for revenue of $9.23 billion, up 9.67% from the prior-year quarter.
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.
Any recent changes to analyst estimates for Starbucks should also be noted by investors. 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.
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 remained stagnant. Starbucks is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Starbucks has a Forward P/E ratio of 28.08 right now. This valuation marks a premium compared to its industry's average Forward P/E of 21.58.
Meanwhile, SBUX's PEG ratio is currently 1.7. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.84 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 45, putting it in the top 18% 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.
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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 $97.16, marking a +0.24% move from the previous day. This move lagged the S&P 500's daily gain of 0.84%. Meanwhile, the Dow gained 0.96%, and the Nasdaq, a tech-heavy index, added 0.81%.
Coming into today, shares of the coffee chain had lost 2.07% in the past month. In that same time, the Retail-Wholesale sector lost 0.13%, while the S&P 500 gained 0.19%.
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 $0.96 per share. This would mark year-over-year growth of 18.52%. Meanwhile, our latest consensus estimate is calling for revenue of $9.23 billion, up 9.67% from the prior-year quarter.
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.
Any recent changes to analyst estimates for Starbucks should also be noted by investors. 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.
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 remained stagnant. Starbucks is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Starbucks has a Forward P/E ratio of 28.08 right now. This valuation marks a premium compared to its industry's average Forward P/E of 21.58.
Meanwhile, SBUX's PEG ratio is currently 1.7. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.84 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 45, putting it in the top 18% 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.