Starbucks (SBUX) Gains As Market Dips: What You Should Know
In the latest trading session, Starbucks (SBUX) closed at $103.32, marking a +0.31% move from the previous day. This change outpaced the S&P 500's 0.44% loss on the day. Elsewhere, the Dow lost 0.62%, while the tech-heavy Nasdaq added 0.5%.
Heading into today, shares of the coffee chain had gained 10.12% over the past month, outpacing the Retail-Wholesale sector's gain of 2.09% and the S&P 500's gain of 2.71% in that time.
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 $0.56, down 29.11% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.93 billion, down 2.29% from the year-ago period.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $2.81 per share and revenue of $28.43 billion. These results would represent year-over-year changes of +140.17% and +20.88%, respectively.
Investors might also notice recent changes to analyst estimates for SBUX. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.11% lower. SBUX is currently a Zacks Rank #3 (Hold).
Investors should also note SBUX's current valuation metrics, including its Forward P/E ratio of 36.64. This valuation marks a premium compared to its industry's average Forward P/E of 33.49.
We can also see that SBUX currently has a PEG ratio of 2.66. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 3.1 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 169, putting it in the bottom 34% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Starbucks Corporation (SBUX) : Free Stock Analysis Report
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