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Starbucks (SBUX) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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Starbucks (SBUX - Free Report) closed the latest trading day at $73.53, indicating a -1.55% change from the previous session's end. This change lagged the S&P 500's daily loss of 0.51%. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, lost 0.93%.
Heading into today, shares of the coffee chain had lost 5.65% over the past month, lagging the Retail-Wholesale sector's loss of 2.37% and the S&P 500's loss of 0.26% in that time.
Investors will be eagerly watching for the performance of Starbucks in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 30, 2024. The company is forecasted to report an EPS of $0.93, showcasing a 7% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $9.22 billion, indicating a 0.61% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.57 per share and revenue of $36.75 billion. These totals would mark changes of +0.85% and +2.14%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Starbucks. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.51% lower. Starbucks currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Starbucks is currently exchanging hands at a Forward P/E ratio of 20.93. Its industry sports an average Forward P/E of 19.5, so one might conclude that Starbucks is trading at a premium comparatively.
It is also worth noting that SBUX currently has a PEG ratio of 1.69. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SBUX's industry had an average PEG ratio of 1.88 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Starbucks (SBUX) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Starbucks (SBUX - Free Report) closed the latest trading day at $73.53, indicating a -1.55% change from the previous session's end. This change lagged the S&P 500's daily loss of 0.51%. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, lost 0.93%.
Heading into today, shares of the coffee chain had lost 5.65% over the past month, lagging the Retail-Wholesale sector's loss of 2.37% and the S&P 500's loss of 0.26% in that time.
Investors will be eagerly watching for the performance of Starbucks in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 30, 2024. The company is forecasted to report an EPS of $0.93, showcasing a 7% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $9.22 billion, indicating a 0.61% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.57 per share and revenue of $36.75 billion. These totals would mark changes of +0.85% and +2.14%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Starbucks. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.51% lower. Starbucks currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Starbucks is currently exchanging hands at a Forward P/E ratio of 20.93. Its industry sports an average Forward P/E of 19.5, so one might conclude that Starbucks is trading at a premium comparatively.
It is also worth noting that SBUX currently has a PEG ratio of 1.69. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SBUX's industry had an average PEG ratio of 1.88 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.