Stock in Starbucks (SBUX) Drops -0.04%: Key Insights

With a change of -0.04% from the previous trading day, Starbucks (SBUX) ended the most recent trading session at $90.67. There was less of a shift than the 0.31% daily decline in the S&P 500. In contrast, the tech-focused Nasdaq fell 0.27 percent, and the Dow fell 0.41%.

The coffee chain's stock had fallen 5.13 percent in the last 30 days before today's trade. This is behind the 3.05% increase in the S&P 500 and the 2.43% increase in the Retail-Wholesale sector over that time.

Starbucks' performance in its next earnings report will be closely monitored by investors. Profit before interest and taxes (EPS) for the quarter ending in March is expected to be $0.82, up 10.81% from the same period last year. The most recent average projection we have is for quarterly sales of $9.21 billion, an increase of 5.57% compared to the same period last year.

Zacks Consensus Estimates are predicting $4.06 per share in earnings and $38.78 billion in revenue for the entire year, which is an increase of 14.69% and 7.78% from the previous year, respectively.

It is important for investors to keep track of any changes in analyst estimates for Starbucks. These updates usually mirror the most recent, often fleeting, short-term business trends. Thus, when analysts revise their projections in a positive direction, it shows that they are confident in the company's success and profitability.

There is a clear relationship between these estimate revisions and the future performance of stock prices, according to empirical studies. Use the Zacks Rank to your advantage as an investor. This approach takes into account these changes in estimates and offers a straightforward, practical rating system.

Stocks rated #1 have had an average yearly return of +25% since 1988, proving the Zacks Rank system's impressive track record of outperformance. The system ranges from #1 (Strong Buy) to #5 (Strong Sell). Over the last 30 days, there has been a 0.19 percent decrease in the Zacks Consensus EPS estimate. Starbucks is currently ranked #3 (Hold) by Zacks Invest Research.

In terms of valuation, the forward price-to-earnings ratio for Starbucks is 22.34 right now. Compared to its industry's average Forward P/E of 20.1, this indicates a premium.

Furthermore, it is worth mentioning that SBUX now has a PEG ratio of 1.44. The PEG ratio is a popular alternative to the more well-known P/E ratio that accounts for a stock's predicted earnings growth rate. At the end of the trading day yesterday, the average PEG ratio for the retail-restaurants industry was 1.81. The Retail-Wholesale sector includes the Retail-Restaurant industry. The current Zacks Industry Rank for this sector is 99, putting it in the top 40% of more than 250 industries.

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