Starbucks (SBUX) closed the most recent trading day at $92.84, moving -0.31% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 1.11% for the day. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq lost 1.89%.
Coming into today, shares of the coffee chain had lost 6.22% in the past month. In that same time, the Retail-Wholesale sector lost 3.46%, while the S&P 500 lost 1.7%.
The investment community will be paying close attention to the earnings performance of Starbucks in its upcoming release. On that day, Starbucks is projected to report earnings of $0.66 per share, which would represent a year-over-year decline of 26.67%. Simultaneously, our latest consensus estimate expects the revenue to be $9.33 billion, showing a 1% drop compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.11 per share and a revenue of $37.33 billion, signifying shifts of -6.04% and +3.18%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Starbucks. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Starbucks currently has a Zacks Rank of #4 (Sell).
Investors should also note Starbucks’s current valuation metrics, including its Forward P/E ratio of 29.93. This represents a premium compared to its industry’s average Forward P/E of 23.35.
Also, we should mention that SBUX has a PEG ratio of 2.73. 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. The Retail – Restaurants industry currently had an average PEG ratio of 2.03 as of yesterday’s close.
The Retail – Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 161, which puts it in the bottom 36% 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.
Don’t forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Starbucks Corporation (SBUX) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
