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In the latest trading session, Starbucks (SBUX) closed at $112.45, marking a -0.1% move from the previous day. This move lagged the S&P 500's daily gain of 0.18%.
Prior to today's trading, shares of the coffee chain had gained 1.22% over the past month. This has outpaced the Retail-Wholesale sector's gain of 0.54% and lagged the S&P 500's gain of 2.43% in that time.
Investors will be hoping for strength from SBUX as it approaches its next earnings release. On that day, SBUX is projected to report earnings of $0.76 per share, which would represent year-over-year growth of 265.22%. Our most recent consensus estimate is calling for quarterly revenue of $7.23 billion, up 71.17% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.98 per share and revenue of $28.74 billion. These totals would mark changes of +154.7% and +22.2%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for SBUX. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. SBUX currently has a Zacks Rank of #3 (Hold).
Digging into valuation, SBUX currently has a Forward P/E ratio of 37.8. This valuation marks a premium compared to its industry's average Forward P/E of 32.62.
Investors should also note that SBUX has a PEG ratio of 3.15 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.98 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 108, putting it in the top 43% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Starbucks Corporation (SBUX) : Free Stock Analysis Report
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