Starbucks (SBUX) closed the most recent trading day at $77.84, moving +1.14% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.9%. At the same time, the Dow added 2.05%, and the tech-heavy Nasdaq gained 1.75%.
Wall Street will be looking for positivity from SBUX as it approaches its next earnings report date. The company is expected to report EPS of -$0.44, down 156.41% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.25 billion, down 37.64% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.96 per share and revenue of $23.32 billion. These totals would mark changes of -66.08% and -12.03%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for SBUX. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 35.72% lower. SBUX is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, SBUX is currently trading at a Forward P/E ratio of 79.83. This valuation marks a premium compared to its industry's average Forward P/E of 41.1.
Meanwhile, SBUX's PEG ratio is currently 5.81. 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 4.78 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 88, which puts it in the top 35% of all 250+ industries.
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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