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Why the Market Dipped But Starbucks (SBUX) Gained Today
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Starbucks (SBUX - Free Report) ended the recent trading session at $94.20, demonstrating a +0.01% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.17%. Elsewhere, the Dow saw a downswing of 0.58%, while the tech-heavy Nasdaq appreciated by 0.27%.
Prior to today's trading, shares of the coffee chain had gained 0.54% over the past month. This has outpaced the Retail-Wholesale sector's loss of 5.71% and the S&P 500's loss of 3.95% in that time.
The investment community will be closely monitoring the performance of Starbucks in its forthcoming earnings report. The company is scheduled to release its earnings on November 2, 2023. On that day, Starbucks is projected to report earnings of $0.97 per share, which would represent year-over-year growth of 19.75%. In the meantime, our current consensus estimate forecasts the revenue to be $9.23 billion, indicating a 9.65% growth compared to the corresponding quarter of the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Starbucks. Such recent modifications usually signify the changing landscape of near-term business trends. 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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 0.28% lower. Right now, Starbucks possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Starbucks is currently being traded at a Forward P/E ratio of 23.21. This signifies a premium in comparison to the average Forward P/E of 19.5 for its industry.
It is also worth noting that SBUX currently has a PEG ratio of 1.37. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 1.6.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 38% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Why the Market Dipped But Starbucks (SBUX) Gained Today
Starbucks (SBUX - Free Report) ended the recent trading session at $94.20, demonstrating a +0.01% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.17%. Elsewhere, the Dow saw a downswing of 0.58%, while the tech-heavy Nasdaq appreciated by 0.27%.
Prior to today's trading, shares of the coffee chain had gained 0.54% over the past month. This has outpaced the Retail-Wholesale sector's loss of 5.71% and the S&P 500's loss of 3.95% in that time.
The investment community will be closely monitoring the performance of Starbucks in its forthcoming earnings report. The company is scheduled to release its earnings on November 2, 2023. On that day, Starbucks is projected to report earnings of $0.97 per share, which would represent year-over-year growth of 19.75%. In the meantime, our current consensus estimate forecasts the revenue to be $9.23 billion, indicating a 9.65% growth compared to the corresponding quarter of the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Starbucks. Such recent modifications usually signify the changing landscape of near-term business trends. 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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 0.28% lower. Right now, Starbucks possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Starbucks is currently being traded at a Forward P/E ratio of 23.21. This signifies a premium in comparison to the average Forward P/E of 19.5 for its industry.
It is also worth noting that SBUX currently has a PEG ratio of 1.37. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 1.6.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 38% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.