Starbucks (SBUX) closed at $91.56 in the latest trading session, marking a +0.66% move from the prior day. This change outpaced the S&P 500's 0% on the day. Elsewhere, the Dow lost 0.19%, while the tech-heavy Nasdaq added 0.07%.
Prior to today's trading, shares of the coffee chain had lost 5.56% over the past month. This has lagged the Retail-Wholesale sector's gain of 4.58% and the S&P 500's gain of 4.25% in that time.
Investors will be hoping for strength from SBUX as it approaches its next earnings release. The company is expected to report EPS of $0.70, up 12.9% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.63 billion, up 5.24% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.83 per share and revenue of $26.39 billion, which would represent changes of +16.94% and +6.76%, respectively, from the prior year.
Any recent changes to analyst estimates for SBUX should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 0.03% higher. SBUX is currently a Zacks Rank #2 (Buy).
Looking at its valuation, SBUX is holding a Forward P/E ratio of 32.18. This valuation marks a premium compared to its industry's average Forward P/E of 23.53.
Investors should also note that SBUX has a PEG ratio of 2.48 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. The Retail - Restaurants was holding an average PEG ratio of 2.37 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 38% 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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