Starbucks (SBUX) Stock Moves -0.04%: What You Should Know
Starbucks (SBUX) closed at $90.67 in the latest trading session, marking a -0.04% move from the prior day. This change was narrower than the S&P 500's daily loss of 0.31%. On the other hand, the Dow registered a loss of 0.41%, and the technology-centric Nasdaq decreased by 0.27%.
Prior to today's trading, shares of the coffee chain had lost 5.13% over the past month. This has lagged the Retail-Wholesale sector's gain of 2.43% and the S&P 500's gain of 3.05% in that time.
Investors will be eagerly watching for the performance of Starbucks in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.82, indicating a 10.81% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $9.21 billion, up 5.57% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.06 per share and revenue of $38.78 billion, which would represent changes of +14.69% and +7.78%, respectively, from the prior year.
Any recent changes to analyst estimates for Starbucks should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.19% lower within the past month. As of now, Starbucks holds a Zacks Rank of #3 (Hold).
Digging into valuation, Starbucks currently has a Forward P/E ratio of 22.34. This signifies a premium in comparison to the average Forward P/E of 20.1 for its industry.
One should further note that SBUX currently holds a PEG ratio of 1.44. 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 industry currently had an average PEG ratio of 1.81 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 99, placing it within the top 40% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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
