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Starbucks (SBUX) Beats Stock Market Upswing: What Investors Need to Know
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Starbucks (SBUX - Free Report) closed the most recent trading day at $95.93, moving +0.67% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.04%. Elsewhere, the Dow saw an upswing of 0.14%, while the tech-heavy Nasdaq depreciated by 0.03%.
Heading into today, shares of the coffee chain had lost 4.57% over the past month, lagging the Retail-Wholesale sector's gain of 6.63% and the S&P 500's gain of 5.28% in that time.
The upcoming earnings release of Starbucks will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.95, reflecting a 26.67% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $9.68 billion, showing a 11.13% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.14 per share and a revenue of $39.58 billion, indicating changes of +16.95% and +10.03%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.08% lower. Right now, Starbucks possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Starbucks has a Forward P/E ratio of 23.02 right now. This represents a premium compared to its industry's average Forward P/E of 21.99.
We can additionally observe that SBUX currently boasts a PEG ratio of 1.39. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Retail - Restaurants industry stood at 2 at the close of the market yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 56, placing it within the top 23% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Starbucks (SBUX) Beats Stock Market Upswing: What Investors Need to Know
Starbucks (SBUX - Free Report) closed the most recent trading day at $95.93, moving +0.67% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.04%. Elsewhere, the Dow saw an upswing of 0.14%, while the tech-heavy Nasdaq depreciated by 0.03%.
Heading into today, shares of the coffee chain had lost 4.57% over the past month, lagging the Retail-Wholesale sector's gain of 6.63% and the S&P 500's gain of 5.28% in that time.
The upcoming earnings release of Starbucks will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.95, reflecting a 26.67% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $9.68 billion, showing a 11.13% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.14 per share and a revenue of $39.58 billion, indicating changes of +16.95% and +10.03%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.08% lower. Right now, Starbucks possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Starbucks has a Forward P/E ratio of 23.02 right now. This represents a premium compared to its industry's average Forward P/E of 21.99.
We can additionally observe that SBUX currently boasts a PEG ratio of 1.39. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Retail - Restaurants industry stood at 2 at the close of the market yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 56, placing it within the top 23% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.