Yahoo Finance Starbucks (SBUX) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Starbucks (SBUX) closed at $78.74, marking a -1.06% move from the previous day. This move lagged the S&P 500's daily loss of 0.34%. Elsewhere, the Dow gained 0.05%, while the tech-heavy Nasdaq lost 0.69%.
Wall Street will be looking for positivity from SBUX as it approaches its next earnings report date. In that report, analysts expect SBUX to post earnings of -$0.24 per share. This would mark a year-over-year decline of 130.77%. Our most recent consensus estimate is calling for quarterly revenue of $4.41 billion, down 35.31% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.25 per share and revenue of $23.52 billion. These totals would mark changes of -55.83% and -11.26%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for SBUX. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. The Zacks Consensus EPS estimate has moved 0.81% higher within the past month. SBUX is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, SBUX currently has a Forward P/E ratio of 63.56. Its industry sports an average Forward P/E of 43.59, so we one might conclude that SBUX is trading at a premium comparatively.
We can also see that SBUX currently has a PEG ratio of 4.62. 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. The Retail - Restaurants was holding an average PEG ratio of 4.79 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% of all 250+ industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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