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Starbucks (SBUX) Stock Drops Despite Market Gains: Important Facts to Note
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Starbucks (SBUX - Free Report) closed the most recent trading day at $79.38, moving -0.64% from the previous trading session. This change lagged the S&P 500's daily gain of 0.85%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, added 1.53%.
The the stock of coffee chain has risen by 5.63% in the past month, leading the Retail-Wholesale sector's gain of 0.43% and the S&P 500's gain of 3.11%.
The investment community will be paying close attention to the earnings performance of Starbucks in its upcoming release. In that report, analysts expect Starbucks to post earnings of $0.94 per share. This would mark a year-over-year decline of 6%. Our most recent consensus estimate is calling for quarterly revenue of $9.24 billion, up 0.83% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $3.59 per share and a revenue of $36.83 billion, demonstrating changes of +1.41% and +2.36%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Starbucks. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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. Within the past 30 days, our consensus EPS projection has moved 1% lower. Starbucks is currently a Zacks Rank #5 (Strong Sell).
Looking at its valuation, Starbucks is holding a Forward P/E ratio of 22.24. This expresses a premium compared to the average Forward P/E of 19.25 of its industry.
Investors should also note that SBUX has a PEG ratio of 1.74 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Restaurants industry had an average PEG ratio of 1.74 as trading concluded yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 143, putting it in the bottom 44% of all 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.
To follow SBUX in the coming trading sessions, be sure to utilize Zacks.com.
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Starbucks (SBUX) Stock Drops Despite Market Gains: Important Facts to Note
Starbucks (SBUX - Free Report) closed the most recent trading day at $79.38, moving -0.64% from the previous trading session. This change lagged the S&P 500's daily gain of 0.85%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, added 1.53%.
The the stock of coffee chain has risen by 5.63% in the past month, leading the Retail-Wholesale sector's gain of 0.43% and the S&P 500's gain of 3.11%.
The investment community will be paying close attention to the earnings performance of Starbucks in its upcoming release. In that report, analysts expect Starbucks to post earnings of $0.94 per share. This would mark a year-over-year decline of 6%. Our most recent consensus estimate is calling for quarterly revenue of $9.24 billion, up 0.83% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $3.59 per share and a revenue of $36.83 billion, demonstrating changes of +1.41% and +2.36%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Starbucks. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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. Within the past 30 days, our consensus EPS projection has moved 1% lower. Starbucks is currently a Zacks Rank #5 (Strong Sell).
Looking at its valuation, Starbucks is holding a Forward P/E ratio of 22.24. This expresses a premium compared to the average Forward P/E of 19.25 of its industry.
Investors should also note that SBUX has a PEG ratio of 1.74 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Restaurants industry had an average PEG ratio of 1.74 as trading concluded yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 143, putting it in the bottom 44% of all 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.
To follow SBUX in the coming trading sessions, be sure to utilize Zacks.com.