Starbucks (SBUX) closed at $105.63 in the latest trading session, marking a +1.24% move from the prior day. This move outpaced the S&P 500's daily loss of 0.22%. Meanwhile, the Dow lost 0.23%, and the Nasdaq, a tech-heavy index, lost 0.38%.
Heading into today, shares of the coffee chain had gained 6.45% over the past month, outpacing the Retail-Wholesale sector's loss of 1.62% and the S&P 500's gain of 2.78% in that time.
Investors will be hoping for strength from SBUX as it approaches its next earnings release. In that report, analysts expect SBUX to post earnings of $0.55 per share. This would mark a year-over-year decline of 30.38%. Our most recent consensus estimate is calling for quarterly revenue of $6.90 billion, down 2.83% from the year-ago period.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $2.81 per share and revenue of $28.37 billion. These results would represent year-over-year changes of +140.17% and +20.65%, respectively.
Any recent changes to analyst estimates for SBUX should also be noted by investors. 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% lower. SBUX is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, SBUX currently has a Forward P/E ratio of 37.19. Its industry sports an average Forward P/E of 34.93, so we one might conclude that SBUX is trading at a premium comparatively.
We can also see that SBUX currently has a PEG ratio of 2.7. 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 3.13 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 33% 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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