Yahoo Finance Starbucks (SBUX) Stock Moves -0.23%: What You Should Know
The most recent trading session ended with Starbucks (SBUX) standing at $79.73, reflecting a -0.23% shift from the previouse trading day's closing. This change was narrower than the S&P 500's daily loss of 0.31%. Meanwhile, the Dow gained 0.67%, and the Nasdaq, a tech-heavy index, lost 1.09%.
The coffee chain's shares have seen an increase of 1.32% over the last month, not keeping up with the Retail-Wholesale sector's gain of 1.85% and the S&P 500's gain of 2.73%.
Market participants will be closely following the financial results of Starbucks in its upcoming release. It is anticipated that the company will report an EPS of $0.94, marking a 6% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $9.24 billion, reflecting a 0.83% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.59 per share and revenue of $36.86 billion, indicating changes of +1.41% and +2.45%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Starbucks. Such recent modifications usually signify the changing landscape 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.19% decrease. Starbucks is currently a Zacks Rank #4 (Sell).
From a valuation perspective, Starbucks is currently exchanging hands at a Forward P/E ratio of 22.28. For comparison, its industry has an average Forward P/E of 19.19, which means Starbucks is trading at a premium to the group.
We can also see that SBUX currently has a PEG ratio of 1.74. 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 was holding an average PEG ratio of 1.74 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 149, placing it within the bottom 41% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Starbucks Corporation (SBUX) : Free Stock Analysis Report
