Advertisement
New Zealand markets closed
  • NZX 50

    12,123.14
    -11.83 (-0.10%)
     
  • NZD/USD

    0.6090
    -0.0031 (-0.50%)
     
  • ALL ORDS

    8,263.30
    +57.20 (+0.70%)
     
  • OIL

    82.24
    +0.03 (+0.04%)
     
  • GOLD

    2,411.30
    -9.40 (-0.39%)
     

Starbucks (SBUX) Stock Falls Amid Market Uptick: What Investors Need to Know

In the latest trading session, Starbucks (SBUX) closed at $80.20, marking a -1.39% move from the previous day. This change lagged the S&P 500's 0.25% gain on the day. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.03%.

Heading into today, shares of the coffee chain had gained 4.89% over the past month, outpacing the Retail-Wholesale sector's of 0% and the S&P 500's gain of 3.34% in that time.

The investment community will be closely monitoring the performance of Starbucks in its forthcoming earnings report. The company is predicted to post an EPS of $0.94, indicating a 6% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $9.24 billion, indicating a 0.83% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.59 per share and a revenue of $36.86 billion, representing changes of +1.41% and +2.45%, respectively, from the prior year.

ADVERTISEMENT

It is also important to note the recent changes to analyst estimates for Starbucks. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.11% lower. Right now, Starbucks possesses a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that Starbucks has a Forward P/E ratio of 22.68 right now. This signifies a premium in comparison to the average Forward P/E of 19.51 for its industry.

We can additionally observe that SBUX currently boasts a PEG ratio of 1.78. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Retail - Restaurants industry stood at 1.78 at the close of the market yesterday.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 161, this industry ranks in the bottom 37% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Starbucks Corporation (SBUX) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research