Starbucks (SBUX) ended the recent trading session at $98.81, demonstrating a +0.84% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.29%. Elsewhere, the Dow lost 0.32%, while the tech-heavy Nasdaq lost 0.5%.
Shares of the coffee chain witnessed a gain of 6.67% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 3.53% and the S&P 500's gain of 2.52%.
Analysts and investors alike will be keeping a close eye on the performance of Starbucks in its upcoming earnings disclosure. The company's earnings report is set to go public on January 28, 2025. It is anticipated that the company will report an EPS of $0.65, marking a 27.78% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $9.3 billion, down 1.3% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.08 per share and revenue of $37.18 billion. These totals would mark changes of -6.95% and +2.78%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Starbucks. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.93% lower. As of now, Starbucks holds a Zacks Rank of #4 (Sell).
Looking at valuation, Starbucks is presently trading at a Forward P/E ratio of 31.79. Its industry sports an average Forward P/E of 23.62, so one might conclude that Starbucks is trading at a premium comparatively.
It's also important to note that SBUX currently trades at 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. The Retail - Restaurants industry had an average PEG ratio of 2.04 as trading concluded yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 78, placing it within the top 32% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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