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Starbucks (SBUX) Ascends But Remains Behind Market: Some Facts to Note
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Starbucks (SBUX - Free Report) ended the recent trading session at $93.08, demonstrating a +0.01% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 1.83%. On the other hand, the Dow registered a gain of 1.65%, and the technology-centric Nasdaq increased by 2.45%.
The coffee chain's stock has climbed by 1.06% in the past month, exceeding the Retail-Wholesale sector's loss of 4.54% and the S&P 500's loss of 3.31%.
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 January 28, 2025. The company's earnings per share (EPS) are projected to be $0.66, reflecting a 26.67% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $9.31 billion, indicating a 1.19% decrease compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.10 per share and revenue of $37.23 billion. These totals would mark changes of -6.34% and +2.92%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Starbucks. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.43% downward. Starbucks presently features a Zacks Rank of #4 (Sell).
In terms of valuation, Starbucks is currently trading at a Forward P/E ratio of 30.05. This represents a premium compared to its industry's average Forward P/E of 22.59.
One should further note that SBUX currently holds a PEG ratio of 2.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Restaurants was holding an average PEG ratio of 1.99 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 86, this industry ranks in the top 35% of all industries, numbering over 250.
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) Ascends But Remains Behind Market: Some Facts to Note
Starbucks (SBUX - Free Report) ended the recent trading session at $93.08, demonstrating a +0.01% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 1.83%. On the other hand, the Dow registered a gain of 1.65%, and the technology-centric Nasdaq increased by 2.45%.
The coffee chain's stock has climbed by 1.06% in the past month, exceeding the Retail-Wholesale sector's loss of 4.54% and the S&P 500's loss of 3.31%.
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 January 28, 2025. The company's earnings per share (EPS) are projected to be $0.66, reflecting a 26.67% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $9.31 billion, indicating a 1.19% decrease compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.10 per share and revenue of $37.23 billion. These totals would mark changes of -6.34% and +2.92%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Starbucks. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.43% downward. Starbucks presently features a Zacks Rank of #4 (Sell).
In terms of valuation, Starbucks is currently trading at a Forward P/E ratio of 30.05. This represents a premium compared to its industry's average Forward P/E of 22.59.
One should further note that SBUX currently holds a PEG ratio of 2.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Restaurants was holding an average PEG ratio of 1.99 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 86, this industry ranks in the top 35% of all industries, numbering over 250.
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.