Starbucks (SBUX) closed at $68.71 in the latest trading session, marking a +1.36% move from the prior day. This change outpaced the S&P 500's 0.16% loss on the day. Meanwhile, the Dow lost 0.12%, and the Nasdaq, a tech-heavy index, lost 0.33%.
Prior to today's trading, shares of the coffee chain had lost 4.29% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 5.75% and the S&P 500's loss of 10.5% in that time.
SBUX will be looking to display strength as it nears its next earnings release. In that report, analysts expect SBUX to post earnings of $0.45 per share. This would mark a year-over-year decline of 25%. Meanwhile, our latest consensus estimate is calling for revenue of $6.15 billion, down 2.49% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.48 per share and revenue of $26.16 billion. These totals would mark changes of -12.37% and -1.31%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for SBUX. These recent revisions tend to reflect the evolving nature of short-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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 14.62% lower. SBUX is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that SBUX has a Forward P/E ratio of 27.34 right now. For comparison, its industry has an average Forward P/E of 20.59, which means SBUX is trading at a premium to the group.
Investors should also note that SBUX has a PEG ratio of 1.99 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.98 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 168, which puts it in the bottom 35% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.