Yahoo Finance Starbucks (SBUX) Outpaces Stock Market Gains: What You Should Know
Starbucks (SBUX) closed the most recent trading day at $88.38, moving +1.32% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.45%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.75%.
Prior to today's trading, shares of the coffee chain had gained 5.9% over the past month. This has lagged the Retail-Wholesale sector's gain of 6.56% and outpaced the S&P 500's gain of 3.84% in that time.
Wall Street will be looking for positivity from SBUX as it approaches its next earnings report date. On that day, SBUX is projected to report earnings of $0.73 per share, which would represent year-over-year growth of 17.74%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.68 billion, up 5.9% from the year-ago period.
SBUX's full-year Zacks Consensus Estimates are calling for earnings of $2.78 per share and revenue of $26.25 billion. These results would represent year-over-year changes of +14.88% and +6.21%, respectively.
Investors should also note any recent changes to analyst estimates for SBUX. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. SBUX currently has a Zacks Rank of #2 (Buy).
Investors should also note SBUX's current valuation metrics, including its Forward P/E ratio of 31.35. Its industry sports an average Forward P/E of 23.81, so we one might conclude that SBUX is trading at a premium comparatively.
Investors should also note that SBUX has a PEG ratio of 2.44 right now. 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 2.14 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% 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.
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
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