In the latest trading session, Starbucks (SBUX) closed at $76.39, marking a -0.05% move from the previous day. This change was narrower than the S&P 500's 0.88% loss on the day. At the same time, the Dow lost 0.82%, and the tech-heavy Nasdaq gained 0.08%.
Coming into today, shares of the coffee chain had gained 0.2% in the past month. In that same time, the Retail-Wholesale sector lost 4.09%, while the S&P 500 lost 8.06%.
Investors will be hoping for strength from Starbucks as it approaches its next earnings release. The company is expected to report EPS of $0.78, down 22.77% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.21 billion, up 9.5% from the year-ago period.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $2.89 per share and revenue of $32.38 billion. These results would represent year-over-year changes of -10.8% and +11.42%, respectively.
Investors should also note any recent changes 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 shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.97% lower. Starbucks is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Starbucks is currently trading at a Forward P/E ratio of 26.4. This represents a premium compared to its industry's average Forward P/E of 17.93.
Also, we should mention that SBUX has a PEG ratio of 2.25. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.73 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 197, which puts it in the bottom 23% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Starbucks Corporation (SBUX) : Free Stock Analysis Report
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