Starbucks (SBUX) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Starbucks (SBUX) closed at $110.85, marking a -0.55% move from the previous day.
Starbucks (SBUX) closed the most recent trading day at $110.85, moving -0.55% from the previous trading session. This move lagged the S&P 500's daily gain of 1.05%.
Coming into today, shares of the coffee chain had lost 4.89% in the past month. In that same time, the Retail-Wholesale sector lost 8.02%, while the S&P 500 lost 5.07%.
Wall Street will be looking for positivity from SBUX as it approaches its next earnings report date. This is expected to be October 28, 2021. 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.
It is also important to note the 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. SBUX is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note SBUX's current valuation metrics, including its Forward P/E ratio of 29.92. This represents a premium compared to its industry's average Forward P/E of 21.93.
Investors should also note that SBUX has a PEG ratio of 2.49 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SBUX's industry had an average PEG ratio of 2.41 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 106, which puts it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>
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 Report
To read this article on Zacks.com click here.