Starbucks (SBUX) closed the most recent trading day at $67.04, moving -0.55% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.76%. Elsewhere, the Dow lost 0.82%, while the tech-heavy Nasdaq lost 0.9%.
Heading into today, shares of the coffee chain had gained 16.61% over the past month, outpacing the Retail-Wholesale sector's loss of 0.47% and the S&P 500's loss of 1.41% in that time.
Wall Street will be looking for positivity from SBUX as it approaches its next earnings report date. This is expected to be January 24, 2019. On that day, SBUX is projected to report earnings of $0.64 per share, which would represent a year-over-year decline of 1.54%. Meanwhile, our latest consensus estimate is calling for revenue of $6.47 billion, up 6.52% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.65 per share and revenue of $26.12 billion, which would represent changes of +9.5% and +5.65%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for SBUX. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.89% higher. SBUX is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, SBUX currently has a Forward P/E ratio of 25.48. For comparison, its industry has an average Forward P/E of 23.91, which means SBUX is trading at a premium to the group.
Also, we should mention that SBUX has a PEG ratio of 1.89. 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. The Retail - Restaurants industry currently had an average PEG ratio of 1.84 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 170, putting it in the bottom 34% 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.
To follow SBUX in the coming trading sessions, be sure to utilize Zacks.com.