Starbucks (SBUX) Increases Despite Market Slip: Here's What You Need to Know

In the latest close session, Starbucks (SBUX) was up +1.4% at $81.15. This change outpaced the S&P 500's 0.16% loss on the day. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq lost 0.76%. Shares of the coffee chain witnessed a loss of 3.21% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 4.08%, and underperforming the S&P 500's gain of 1.14%.Analysts and investors alike will be keeping a close eye on the performance of Starbucks in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.57, signifying a 28.75% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $9.36 billion, indicating a 3.2% increase compared to the same quarter of the previous year. SBUX's full-year Zacks Consensus Estimates are calling for earnings of $2.17 per share and revenue of $36.99 billion. These results would represent year-over-year changes of -34.44% and 0%, respectively. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Starbucks. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.83% lower. Right now, Starbucks possesses a Zacks Rank of #3 (Hold). With respect to valuation, Starbucks is currently being traded at a Forward P/E ratio of 30.27. This expresses a premium compared to the average Forward P/E of 22.84 of its industry. One should further note that SBUX currently holds a PEG ratio of 3.97. 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 industry currently had an average PEG ratio of 2.24 as of yesterday's close. The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 208, finds itself in the bottom 16% echelons of all 250+ industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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. Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.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