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Starbucks (SBUX) Outpaces Stock Market Gains: What You Should Know
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Starbucks (SBUX - Free Report) closed at $111.74 in the latest trading session, marking a +1.24% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.02%. Elsewhere, the Dow gained 0.74%, while the tech-heavy Nasdaq lost 0.4%.
Heading into today, shares of the coffee chain had lost 2.83% over the past month, outpacing the Retail-Wholesale sector's loss of 6.04% and lagging the S&P 500's loss of 0.91% in that time.
Investors will be hoping for strength from Starbucks as it approaches its next earnings release. In that report, analysts expect Starbucks to post earnings of $0.80 per share. This would mark year-over-year growth of 31.15%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.99 billion, up 18.44% from the year-ago period.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $3.45 per share and revenue of $32.68 billion. These results would represent year-over-year changes of +6.48% and +12.45%, respectively.
It is also important to note the recent changes to analyst estimates for Starbucks. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.56% lower within the past month. Starbucks is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, Starbucks currently has a Forward P/E ratio of 32.02. This valuation marks a premium compared to its industry's average Forward P/E of 23.4.
Investors should also note that SBUX has a PEG ratio of 1.62 right now. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.05 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 214, which puts it in the bottom 16% 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.
To follow SBUX in the coming trading sessions, be sure to utilize Zacks.com.
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Starbucks (SBUX) Outpaces Stock Market Gains: What You Should Know
Starbucks (SBUX - Free Report) closed at $111.74 in the latest trading session, marking a +1.24% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.02%. Elsewhere, the Dow gained 0.74%, while the tech-heavy Nasdaq lost 0.4%.
Heading into today, shares of the coffee chain had lost 2.83% over the past month, outpacing the Retail-Wholesale sector's loss of 6.04% and lagging the S&P 500's loss of 0.91% in that time.
Investors will be hoping for strength from Starbucks as it approaches its next earnings release. In that report, analysts expect Starbucks to post earnings of $0.80 per share. This would mark year-over-year growth of 31.15%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.99 billion, up 18.44% from the year-ago period.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $3.45 per share and revenue of $32.68 billion. These results would represent year-over-year changes of +6.48% and +12.45%, respectively.
It is also important to note the recent changes to analyst estimates for Starbucks. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.56% lower within the past month. Starbucks is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, Starbucks currently has a Forward P/E ratio of 32.02. This valuation marks a premium compared to its industry's average Forward P/E of 23.4.
Investors should also note that SBUX has a PEG ratio of 1.62 right now. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.05 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 214, which puts it in the bottom 16% 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.
To follow SBUX in the coming trading sessions, be sure to utilize Zacks.com.