Starbucks (SBUX) Stock Moves -1.04%: What You Should Know
Starbucks (SBUX) closed the most recent trading day at $87.60, moving -1.04% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.63%. Elsewhere, the Dow lost 1.44%, while the tech-heavy Nasdaq lost 1.65%.
Heading into today, shares of the coffee chain had gained 2.04% over the past month, lagging the Retail-Wholesale sector's gain of 6.28% and the S&P 500's gain of 2.86% in that time.
Investors will be hoping for strength from SBUX as it approaches its next earnings release, which is expected to be October 29, 2020. In that report, analysts expect SBUX to post earnings of $0.32 per share. This would mark a year-over-year decline of 54.29%. Meanwhile, our latest consensus estimate is calling for revenue of $6.07 billion, down 10.05% from the prior-year quarter.
It is also important to note the 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.53% higher within the past month. SBUX is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that SBUX has a Forward P/E ratio of 32.78 right now. This represents a premium compared to its industry's average Forward P/E of 31.51.
Meanwhile, SBUX's PEG ratio is currently 2.29. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 4.34 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 83, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.