Starbucks (SBUX) Stock Drops Despite Market Gains: Important Facts to Note

In the latest trading session, Starbucks (SBUX) closed at $88.33, marking a -1.22% move from the previous day. This move lagged the S&P 500's daily gain of 0.88%. At the same time, the Dow added 0.38%, and the tech-heavy Nasdaq gained 1.31%. Coming into today, shares of the coffee chain had gained 8.23% in the past month. In that same time, the Retail-Wholesale sector gained 3.93%, while the S&P 500 gained 2.48%. The investment community will be paying close attention to the earnings performance of Starbucks in its upcoming release. In that report, analysts expect Starbucks to post earnings of $0.6 per share. This would mark a year-over-year decline of 13.04%. Simultaneously, our latest consensus estimate expects the revenue to be $9.64 billion, showing a 2.62% escalation compared to the year-ago quarter. For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.4 per share and a revenue of $38.49 billion, signifying shifts of +12.68% and +3.5%, respectively, from the last year. Investors should also pay attention to any latest changes in analyst estimates for Starbucks. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability. Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.3% decrease. 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 37.32. This indicates a premium in contrast to its industry's Forward P/E of 21.21. We can additionally observe that SBUX currently boasts a PEG ratio of 1.82. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 2.35. The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 24% of all 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. You can find more information on all of these metrics, and much more, on Zacks.com. Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>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