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Starbucks (SBUX) Gains But Lags Market: What You Should Know
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The most recent trading session ended with Starbucks (SBUX - Free Report) standing at $96.61, reflecting a +0.18% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 0.41%. At the same time, the Dow added 0.36%, and the tech-heavy Nasdaq gained 0.45%.
Heading into today, shares of the coffee chain had lost 5.66% over the past month, lagging the Retail-Wholesale sector's gain of 3.84% and the S&P 500's gain of 4.91% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Starbucks in its upcoming earnings disclosure. The company is expected to report EPS of $0.95, up 26.67% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $9.7 billion, reflecting a 11.27% rise from the equivalent quarter last year.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $4.14 per share and revenue of $39.61 billion. These results would represent year-over-year changes of +16.95% and +10.09%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Starbucks. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.33% lower within the past month. Starbucks presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Starbucks currently has a Forward P/E ratio of 23.3. This indicates a premium in contrast to its industry's Forward P/E of 20.1.
We can additionally observe that SBUX currently boasts a PEG ratio of 1.41. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Restaurants was holding an average PEG ratio of 1.86 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 49, putting it in the top 20% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Starbucks (SBUX) Gains But Lags Market: What You Should Know
The most recent trading session ended with Starbucks (SBUX - Free Report) standing at $96.61, reflecting a +0.18% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 0.41%. At the same time, the Dow added 0.36%, and the tech-heavy Nasdaq gained 0.45%.
Heading into today, shares of the coffee chain had lost 5.66% over the past month, lagging the Retail-Wholesale sector's gain of 3.84% and the S&P 500's gain of 4.91% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Starbucks in its upcoming earnings disclosure. The company is expected to report EPS of $0.95, up 26.67% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $9.7 billion, reflecting a 11.27% rise from the equivalent quarter last year.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $4.14 per share and revenue of $39.61 billion. These results would represent year-over-year changes of +16.95% and +10.09%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Starbucks. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.33% lower within the past month. Starbucks presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Starbucks currently has a Forward P/E ratio of 23.3. This indicates a premium in contrast to its industry's Forward P/E of 20.1.
We can additionally observe that SBUX currently boasts a PEG ratio of 1.41. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Restaurants was holding an average PEG ratio of 1.86 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 49, putting it in the top 20% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.