Starbucks (SBUX) Falls More Steeply Than Broader Market: What Investors Need to Know

Starbucks (SBUX) closed at $92.48 in the latest trading session, marking a -1.01% move from the prior day. This change lagged the S&P 500's 0.4% loss on the day. At the same time, the Dow lost 0.98%, and the tech-heavy Nasdaq gained 0.18%. Heading into today, shares of the coffee chain had lost 0.06% over the past month, lagging the Retail-Wholesale sector's gain of 4.14% and the S&P 500's gain of 4.97%.The investment community will be closely monitoring the performance of Starbucks in its forthcoming earnings report. In that report, analysts expect Starbucks to post earnings of $0.64 per share. This would mark a year-over-year decline of 31.18%. Alongside, our most recent consensus estimate is anticipating revenue of $9.26 billion, indicating a 1.65% upward movement from the same quarter last year. For the full year, the Zacks Consensus Estimates project earnings of $2.48 per share and a revenue of $36.84 billion, demonstrating changes of -25.08% and +1.83%, respectively, from the preceding year. Investors might also notice recent changes to analyst estimates for Starbucks. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.79% fall in the Zacks Consensus EPS estimate. At present, Starbucks boasts a Zacks Rank of #4 (Sell). Investors should also note Starbucks's current valuation metrics, including its Forward P/E ratio of 37.69. This denotes a premium relative to the industry average Forward P/E of 21.52. One should further note that SBUX currently holds a PEG ratio of 4.78. 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. The Retail - Restaurants industry currently had an average PEG ratio of 2.69 as of yesterday's close. The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 147, placing it within the bottom 41% of over 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. Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. 7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks