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Starbucks (SBUX) Rises But Trails Market: What Investors Should Know
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Starbucks (SBUX - Free Report) closed the most recent trading day at $96.21, moving +0.12% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.97%. Elsewhere, the Dow saw an upswing of 0.3%, while the tech-heavy Nasdaq appreciated by 1.45%.
Prior to today's trading, shares of the coffee chain had gained 4.21% over the past month. This has lagged the Retail-Wholesale sector's gain of 7.36% and the S&P 500's gain of 5.41% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Starbucks in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.04, marking a 1.89% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $9.34 billion, indicating a 0.4% decrease compared to the same quarter of the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Starbucks. 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 demonstrates that these adjustments in estimates directly associate with imminent 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.43% decrease. Starbucks is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, Starbucks is holding a Forward P/E ratio of 24.78. This denotes a premium relative to the industry's average Forward P/E of 22.13.
Investors should also note that SBUX has a PEG ratio of 2.11 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. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 2.11.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Starbucks (SBUX) Rises But Trails Market: What Investors Should Know
Starbucks (SBUX - Free Report) closed the most recent trading day at $96.21, moving +0.12% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.97%. Elsewhere, the Dow saw an upswing of 0.3%, while the tech-heavy Nasdaq appreciated by 1.45%.
Prior to today's trading, shares of the coffee chain had gained 4.21% over the past month. This has lagged the Retail-Wholesale sector's gain of 7.36% and the S&P 500's gain of 5.41% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Starbucks in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.04, marking a 1.89% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $9.34 billion, indicating a 0.4% decrease compared to the same quarter of the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Starbucks. 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 demonstrates that these adjustments in estimates directly associate with imminent 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.43% decrease. Starbucks is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, Starbucks is holding a Forward P/E ratio of 24.78. This denotes a premium relative to the industry's average Forward P/E of 22.13.
Investors should also note that SBUX has a PEG ratio of 2.11 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. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 2.11.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.