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Starbucks (SBUX) Stock Moves -0.06%: What You Should Know

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In the latest trading session, Starbucks (SBUX - Free Report) closed at $97.43, marking a -0.06% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.93%. On the other hand, the Dow registered a loss of 0.41%, and the technology-centric Nasdaq decreased by 1.53%.

The coffee chain's shares have seen an increase of 3.09% over the last month, not keeping up with the Retail-Wholesale sector's gain of 5.61% and outstripping the S&P 500's gain of 2.17%.

Investors will be eagerly watching for the performance of Starbucks in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.04, marking a 1.89% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $9.35 billion, reflecting a 0.22% fall from the equivalent quarter last year.

Any recent changes to analyst estimates for Starbucks should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 0.02% lower. Starbucks is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, Starbucks is currently trading at a Forward P/E ratio of 27.41. This indicates a premium in contrast to its industry's Forward P/E of 22.17.

It is also worth noting that SBUX currently has a PEG ratio of 2.33. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.19 based on yesterday's closing prices.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 166, placing it within the bottom 35% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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