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Starbucks (SBUX) Stock Moves -0.91%: What You Should Know

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Zacks Equity Research
·3 min read
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Starbucks (SBUX) closed the most recent trading day at $106.22, moving -0.91% from the previous trading session. This change was narrower than the S&P 500's daily loss of 1.31%. Elsewhere, the Dow lost 0.39%, while the tech-heavy Nasdaq lost 2.7%.

Coming into today, shares of the coffee chain had gained 5.46% in the past month. In that same time, the Retail-Wholesale sector lost 4.11%, while the S&P 500 gained 1.32%.

SBUX will be looking to display strength as it nears its next earnings release. In that report, analysts expect SBUX to post earnings of $0.51 per share. This would mark year-over-year growth of 59.38%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.78 billion, up 13.16% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.83 per share and revenue of $28.52 billion, which would represent changes of +141.88% and +21.27%, respectively, from the prior year.

Any recent changes to analyst estimates for SBUX should also be noted by investors. 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.

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 0.1% lower within the past month. SBUX currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that SBUX has a Forward P/E ratio of 37.89 right now. This valuation marks a discount compared to its industry's average Forward P/E of 39.53.

Investors should also note that SBUX has a PEG ratio of 3.16 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. The Retail - Restaurants industry currently had an average PEG ratio of 3.16 as of yesterday's close.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 230, putting it in the bottom 10% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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