Starbucks (SBUX) Outperforms Stock Market Earnings: What You Need to Know

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Starbucks (SBUX) closed at $ 64.19 during the last trading session, marking an increase of + 0.49% over the previous day. The stock exceeded the 0.45% daily gain of the S & P 500. At the same time, the Dow Jones added 0.51% and the Nasdaq, a large group of technologies, gained 0.42%.

Today, the shares of the coffee chain have lost 3.4% over the past month, lagging the gain of 0.15% in the retail trade and wholesale sector and in the loss of 1.64% of the S & P 500 during this period.

Wall Street will be looking for the positivity of SBUX as the next publication date of its results approaches. This should be January 24, 2019. That day, SBUX should record a profit of $ 0.65 per share, which would represent no growth over the quarter of the previous year. At the same time, our latest consensus estimates are sales of $ 6.48 billion, up 6.76% from the same quarter last year.

Zacks' consensus estimates, prepared by SBUX for a full year, expect a profit of $ 2.64 per share and a $ 26.12 billion business figure. These results would represent variations from year to year of + 9.09% and + 5.68%, respectively.

Investors may also notice recent changes made to the analyst's estimates for SBUX. These revisions generally reflect the latest short-term business trends, which can change frequently. Thus, positive estimates revisions reflect analysts' optimism about the company's operations and profitability.

Based on our research, we believe that these revisions are directly related to stock movements near the teams. To take advantage of this, we have developed Zacks Rank, an exclusive model that takes into account these changes in estimates and provides a usable scoring system.

The Zacks ranking system, which ranges from # 1 (strong buy) to # 5 (strong sell), has an impressive unaudited outperformance history, with # 1 stocks generating an average annual return of + 25% since 1988. In the last 30 days, our projection of consensus EPS declined by 0.1%. SBUX currently holds rank 3 of Zacks (pending).

As valuation is also important, investors should be aware that SBUX currently has a P / E ratio of 24.18. This valuation marks a premium over the average average P / E in its sector of 20.64.

Meanwhile, the PEG ratio of SBUX is currently 1.79. This measure is used in the same way as the famous P / E ratio, but the PEG ratio also takes into account the expected growth rate of the security. The retail-restaurant sector currently has an average PEG ratio of 1.62 at yesterday's close.

The retail sector – restaurants is part of the wholesale retail sector. This group has a ranking of 177 on the Zacks industry, which places it in the last 31% of 250 industries and more.

The Zacks Industry Ranking measures the strength of our industry groups by measuring Zacks' average ranking of individual actions within groups. Our research shows that the 50% of the top rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all these steps, and much more, on Zacks.com.

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Starbucks Corporation (SBUX): Free Stock Analysis Report
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Starbucks Corporation (SBUX): Free Stock Analysis Report

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