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Here's Why Starbucks (SBUX) Gained But Lagged the Market Today September 19, 2024
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Starbucks (SBUX - Free Report) closed at $96.90 in the latest trading session, marking a +0.81% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 1.7%. Elsewhere, the Dow saw an upswing of 1.26%, while the tech-heavy Nasdaq appreciated by 2.51%.
Shares of the coffee chain have appreciated by 3.6% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 4.02% and outperforming the S&P 500's gain of 1.27%.
Analysts and investors alike will be keeping a close eye on the performance of Starbucks in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.04, marking a 1.89% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $9.36 billion, indicating a 0.13% decline compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.56 per share and revenue of $36.46 billion. These totals would mark changes of +0.56% and +1.36%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Starbucks. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.05% rise in the Zacks Consensus EPS estimate. Starbucks presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Starbucks is presently trading at a Forward P/E ratio of 27.02. Its industry sports an average Forward P/E of 20.58, so one might conclude that Starbucks is trading at a premium comparatively.
We can additionally observe that SBUX currently boasts a PEG ratio of 2.3. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 2.18.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 154, placing it within the bottom 40% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »
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Starbucks (SBUX - Free Report) closed at $96.90 in the latest trading session, marking a +0.81% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 1.7%. Elsewhere, the Dow saw an upswing of 1.26%, while the tech-heavy Nasdaq appreciated by 2.51%.
Shares of the coffee chain have appreciated by 3.6% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 4.02% and outperforming the S&P 500's gain of 1.27%.
Analysts and investors alike will be keeping a close eye on the performance of Starbucks in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.04, marking a 1.89% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $9.36 billion, indicating a 0.13% decline compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.56 per share and revenue of $36.46 billion. These totals would mark changes of +0.56% and +1.36%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Starbucks. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.05% rise in the Zacks Consensus EPS estimate. Starbucks presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Starbucks is presently trading at a Forward P/E ratio of 27.02. Its industry sports an average Forward P/E of 20.58, so one might conclude that Starbucks is trading at a premium comparatively.
We can additionally observe that SBUX currently boasts a PEG ratio of 2.3. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 2.18.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 154, placing it within the bottom 40% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »