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Starbucks (SBUX) closed the most recent trading day at $111.71, moving -1.73% from the previous trading session. This move was narrower than the S&P 500’s daily loss of 2.04%.
Prior to today’s trading, shares of the coffee chain had lost 1.67% over the past month. This has lagged the Retail-Wholesale sector’s gain of 0.32% and the S&P 500’s loss of 1.36% in that time.
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 $1.01 per share. This would mark year-over-year growth of 98.04%. Meanwhile, our latest consensus estimate is calling for revenue of $8.28 billion, up 33.4% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.24 per share and revenue of $29.19 billion. These totals would mark changes of +176.92% and +24.1%, respectively, from last year.
Any recent changes to analyst estimates for SBUX should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.11% lower. SBUX currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that SBUX has a Forward P/E ratio of 35.04 right now. Its industry sports an average Forward P/E of 24.13, so we one might conclude that SBUX is trading at a premium comparatively.
It is also worth noting that SBUX currently has a PEG ratio of 2.92. 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. SBUX’s industry had an average PEG ratio of 2.48 as of yesterday’s close.
The Retail – Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 34% 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.
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Starbucks Corporation (SBUX): Free Stock Analysis Report
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