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In the latest trading session, Starbucks (SBUX) closed at $84.78, marking a +0.13% move from the previous day. The stock lagged the S&P 500's daily gain of 1.42%. At the same time, the Dow added 0.97%, and the tech-heavy Nasdaq lost 0.07%.
Prior to today's trading, shares of the coffee chain had gained 10.84% over the past month. This has outpaced the Retail-Wholesale sector's gain of 7% and the S&P 500's gain of 6.69% in that time.
Wall Street will be looking for positivity from Starbucks as it approaches its next earnings report date. This is expected to be August 2, 2022. On that day, Starbucks is projected to report earnings of $0.77 per share, which would represent a year-over-year decline of 23.76%. Meanwhile, our latest consensus estimate is calling for revenue of $8.22 billion, up 9.71% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.87 per share and revenue of $32.35 billion, which would represent changes of -11.42% and +11.33%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Starbucks. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.08% lower within the past month. Starbucks currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Starbucks has a Forward P/E ratio of 29.55 right now. This represents a premium compared to its industry's average Forward P/E of 18.13.
Investors should also note that SBUX has a PEG ratio of 2.63 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. SBUX's industry had an average PEG ratio of 2.03 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 189, which puts it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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 Corporation (SBUX) : Free Stock Analysis Report
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