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

On the most recent trading day, Starbucks (SBUX) closed at $97.66, showing a positive change of +0.87% from the previous day's closing. This increase stood in contrast to the S&P 500, which saw a daily decrease of 0.92%. Meanwhile, the Dow Jones Industrial Average dropped by 0.96%, and the tech-focused Nasdaq Composite fell by 1.6%.

Over the past month, Starbucks' stock has appreciated by 2.51%, which is better than the Retail-Wholesale sector's rise of 1.69%, but slightly behind the S&P 500's increase of 2.68%.

The upcoming earnings report for Starbucks is highly anticipated by investors, scheduled for release on October 30, 2024. Analysts predict that the company will report earnings per share (EPS) of $1.03, reflecting a 2.83% decline compared to the same quarter last year. Revenue estimates stand at $9.33 billion, which indicates a slight drop of 0.49% from the year-ago quarter.

It's essential for investors to track any recent shifts in analyst estimates for Starbucks. Such revisions can signal the changing dynamics in the company's business environment. Typically, positive adjustments in estimates are viewed as encouraging indicators regarding the company's future performance.

According to research, changes in analyst estimates directly impact stock performance. Investors can benefit from this knowledge by utilizing the Zacks Rank system, which evaluates these estimate changes. This system provides a clear and actionable ranking, ranging from #1 (Strong Buy) to #5 (Strong Sell).

The Zacks Rank has a solid reputation for outperforming the market, with stocks rated #1 achieving an average annual return of +25% since 1988. Recently, the Zacks Consensus EPS estimate for Starbucks has decreased by 2.25% over the past month, and currently, it holds a Zacks Rank of #4 (Sell).

From a valuation perspective, Starbucks trades at a Forward Price-to-Earnings (P/E) ratio of 25.18, which is higher than the industry average Forward P/E ratio of 22.89.

Additionally, the company has a PEG (Price/Earnings to Growth) ratio of 2.14. The PEG ratio, which is similar to the P/E ratio, also considers the expected earnings growth rate of the company. Comparatively, stocks in the Retail - Restaurants sector have an average PEG ratio of 2.17.

Starbucks is part of the Retail - Restaurants industry, which falls under the broader Retail-Wholesale sector. This sector currently holds a Zacks Industry Rank of 100, placing it in the top 40% of all industries evaluated.

The Zacks Industry Rank assesses the strength of various industry groups based on the average Zacks Rank of the individual stocks within them. Research shows that the top half of ranked industries typically outperform those in the bottom half by a significant margin.

For those interested in tracking these stock-related metrics, tools and resources are available for monitoring upcoming changes in performance.

Starbucks, Earnings, Stocks