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

Starbucks (SBUX) closed the most recent trading day at $86.69, moving -3.1% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.34%. Elsewhere, the Dow lost 0.94%, while the tech-heavy Nasdaq added 0.16%. Heading into today, shares of the coffee chain had gained 8.73% over the past month, outpacing the Retail-Wholesale sector's gain of 2.04% and the S&P 500's gain of 1.19%.Investors will be eagerly watching for the performance of Starbucks in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.58, signifying a 15.94% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $9.65 billion, indicating a 2.64% growth compared to the corresponding quarter of the prior year. For the full year, the Zacks Consensus Estimates project earnings of $2.33 per share and a revenue of $38.39 billion, demonstrating changes of +9.39% and +3.24%, respectively, from the preceding year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Starbucks. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, there's been a 1.65% fall in the Zacks Consensus EPS estimate. Starbucks is currently a Zacks Rank #5 (Strong Sell). Looking at its valuation, Starbucks is holding a Forward P/E ratio of 38.36. For comparison, its industry has an average Forward P/E of 19.9, which means Starbucks is trading at a premium to the group. Investors should also note that SBUX has a PEG ratio of 1.87 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Restaurants was holding an average PEG ratio of 1.93 at yesterday's closing price. The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 208, putting it in the bottom 16% of all 250+ industries. The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions. #1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>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