Starbucks (SBUX) Exceeds Market Returns: Some Facts to Consider

Starbucks (SBUX) closed the most recent trading day at $99.08, moving +0.99% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.64%. Meanwhile, the Dow experienced a rise of 0.85%, and the technology-dominated Nasdaq saw an increase of 0.31%.Coming into today, shares of the coffee chain had lost 12.83% in the past month. In that same time, the Retail-Wholesale sector lost 11.57%, while the S&P 500 lost 7.69%.The upcoming earnings release of Starbucks will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.52, reflecting a 23.53% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.88 billion, up 3.65% from the year-ago period.In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.99 per share and a revenue of $37.42 billion, indicating changes of -9.67% and +3.45%, respectively, from the former year.Investors should also pay attention to any latest changes in analyst estimates for Starbucks. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.31% fall in the Zacks Consensus EPS estimate. Starbucks is currently sporting a Zacks Rank of #3 (Hold).In terms of valuation, Starbucks is currently trading at a Forward P/E ratio of 32.79. For comparison, its industry has an average Forward P/E of 22.82, which means Starbucks is trading at a premium to the group.It is also worth noting that SBUX currently has a PEG ratio of 3.1. 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 the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 2.07.The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 127, positioning it in the top 50% of all 250+ industries.The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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