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Starbucks (SBUX) Stock Sinks As Market Gains: Here's Why
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Starbucks (SBUX - Free Report) closed at $92.68 in the latest trading session, marking a -0.18% move from the prior day. This change lagged the S&P 500's 0.63% gain on the day. At the same time, the Dow added 0.59%, and the tech-heavy Nasdaq gained 0.39%.
The coffee chain's shares have seen a decrease of 2.55% over the last month, surpassing the Retail-Wholesale sector's loss of 5.62% and the S&P 500's loss of 3.39%.
Market participants will be closely following the financial results of Starbucks in its upcoming release. The company plans to announce its earnings on November 2, 2023. The company is expected to report EPS of $0.96, up 18.52% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $9.23 billion, up 9.74% from the year-ago period.
It's also important for investors to be aware of any recent modifications to analyst estimates for Starbucks. Such recent modifications usually signify the changing landscape 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.16% lower. Starbucks currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Starbucks is holding a Forward P/E ratio of 22.87. This valuation marks a premium compared to its industry's average Forward P/E of 19.01.
One should further note that SBUX currently holds a PEG ratio of 1.39. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.66 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 94, placing it within the top 38% of over 250 industries.
The Zacks Industry Rank is ordered 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.
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: Here's Why
Starbucks (SBUX - Free Report) closed at $92.68 in the latest trading session, marking a -0.18% move from the prior day. This change lagged the S&P 500's 0.63% gain on the day. At the same time, the Dow added 0.59%, and the tech-heavy Nasdaq gained 0.39%.
The coffee chain's shares have seen a decrease of 2.55% over the last month, surpassing the Retail-Wholesale sector's loss of 5.62% and the S&P 500's loss of 3.39%.
Market participants will be closely following the financial results of Starbucks in its upcoming release. The company plans to announce its earnings on November 2, 2023. The company is expected to report EPS of $0.96, up 18.52% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $9.23 billion, up 9.74% from the year-ago period.
It's also important for investors to be aware of any recent modifications to analyst estimates for Starbucks. Such recent modifications usually signify the changing landscape 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.16% lower. Starbucks currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Starbucks is holding a Forward P/E ratio of 22.87. This valuation marks a premium compared to its industry's average Forward P/E of 19.01.
One should further note that SBUX currently holds a PEG ratio of 1.39. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.66 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 94, placing it within the top 38% of over 250 industries.
The Zacks Industry Rank is ordered 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.