Starbucks (SBUX) closed the most recent trading day at $86.45, moving -0.2% from the previous trading session. This move lagged the S&P 500's daily gain of 1%.
Heading into today, shares of the coffee chain had lost 3.13% over the past month, lagging the Retail-Wholesale sector's loss of 2.76% and the S&P 500's loss of 1.22% 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 $0.70, up 12.9% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.63 billion, up 5.18% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for SBUX. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.23% lower. SBUX is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note SBUX's current valuation metrics, including its Forward P/E ratio of 28.08. This represents a premium compared to its industry's average Forward P/E of 21.84.
We can also see that SBUX currently has a PEG ratio of 2.12. 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 was holding an average PEG ratio of 2.04 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 111, putting it in the top 44% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Starbucks Corporation (SBUX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research