Starbucks (SBUX) Increases Yet Falls Behind Market: What Investors Need to Know

Starbucks (SBUX) closed the most recent trading day at $98.24, moving +0.15% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.38%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq added 0.87%.The coffee chain's shares have seen a decrease of 15.01% over the last month, not keeping up with the Retail-Wholesale sector's loss of 7.71% and the S&P 500's loss of 5.59%.The upcoming earnings release of Starbucks will be of great interest to investors. On that day, Starbucks is projected to report earnings of $0.51 per share, which would represent a year-over-year decline of 25%. Simultaneously, our latest consensus estimate expects the revenue to be $8.86 billion, showing a 3.46% escalation compared to the year-ago quarter.Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.97 per share and revenue of $37.41 billion. These totals would mark changes of -10.27% and +3.42%, respectively, from last year.It is also important to note the recent changes to analyst estimates for Starbucks. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.67% lower. Starbucks is currently sporting a Zacks Rank of #3 (Hold).In the context of valuation, Starbucks is at present trading with a Forward P/E ratio of 33.02. This valuation marks a premium compared to its industry's average Forward P/E of 22.77.It's also important to note that SBUX currently trades at a PEG ratio of 3.13. 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 2.11.The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 186, finds itself in the bottom 26% echelons of all 250+ industries.The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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