In the latest close session, Starbucks (SBUX) was down 1.54% at $80.04. The stock trailed the S&P 500, which registered a daily gain of 0.58%.
Heading into today, shares of the coffee chain had lost 3.01% over the past month, lagging the Retail-Wholesale sector's loss of 2.75% and the S&P 500's gain of 3.68%.
Analysts and investors alike will be keeping a close eye on the performance of Starbucks in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.57, signifying a 28.75% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $9.4 billion, indicating a 3.56% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $2.17 per share and a revenue of $37.02 billion, demonstrating changes of -34.44% and 0%, respectively, from the preceding year.
Any recent changes to analyst estimates for Starbucks should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.25% lower. Starbucks currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Starbucks is at present trading with a Forward P/E ratio of 30.58. This indicates a premium in contrast to its industry's Forward P/E of 22.59.
Investors should also note that SBUX has a PEG ratio of 4.01 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.25 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 183, positioning it in the bottom 26% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.
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 ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
