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Starbucks (SBUX) Stock Sinks As Market Gains: What You Should Know
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Starbucks (SBUX - Free Report) closed the most recent trading day at $73.96, moving -0.51% from the previous trading session. This move lagged the S&P 500's daily gain of 1.16%. Elsewhere, the Dow gained 1.27%, while the tech-heavy Nasdaq added 1.29%.
Prior to today's trading, shares of the coffee chain had gained 5.81% over the past month. This has outpaced the Retail-Wholesale sector's gain of 3.18% and the S&P 500's gain of 1.92% in that time.
SBUX will be looking to display strength as it nears its next earnings release. In that report, analysts expect SBUX to post earnings of $0.56 per share. This would mark year-over-year growth of 5.66%. Meanwhile, our latest consensus estimate is calling for revenue of $6.31 billion, up 4.54% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.72 per share and revenue of $26.28 billion. These totals would mark changes of +12.4% and +6.33%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for SBUX. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 0.05% higher. SBUX is currently a Zacks Rank #2 (Buy).
Investors should also note SBUX's current valuation metrics, including its Forward P/E ratio of 27.31. This represents a premium compared to its industry's average Forward P/E of 21.96.
It is also worth noting that SBUX currently has a PEG ratio of 2.13. 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. The Retail - Restaurants was holding an average PEG ratio of 2.06 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 150, which puts it in the bottom 42% 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) Stock Sinks As Market Gains: What You Should Know
Starbucks (SBUX - Free Report) closed the most recent trading day at $73.96, moving -0.51% from the previous trading session. This move lagged the S&P 500's daily gain of 1.16%. Elsewhere, the Dow gained 1.27%, while the tech-heavy Nasdaq added 1.29%.
Prior to today's trading, shares of the coffee chain had gained 5.81% over the past month. This has outpaced the Retail-Wholesale sector's gain of 3.18% and the S&P 500's gain of 1.92% in that time.
SBUX will be looking to display strength as it nears its next earnings release. In that report, analysts expect SBUX to post earnings of $0.56 per share. This would mark year-over-year growth of 5.66%. Meanwhile, our latest consensus estimate is calling for revenue of $6.31 billion, up 4.54% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.72 per share and revenue of $26.28 billion. These totals would mark changes of +12.4% and +6.33%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for SBUX. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 0.05% higher. SBUX is currently a Zacks Rank #2 (Buy).
Investors should also note SBUX's current valuation metrics, including its Forward P/E ratio of 27.31. This represents a premium compared to its industry's average Forward P/E of 21.96.
It is also worth noting that SBUX currently has a PEG ratio of 2.13. 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. The Retail - Restaurants was holding an average PEG ratio of 2.06 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 150, which puts it in the bottom 42% 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.