Starbucks (SBUX) Stock Drops Despite Market Gains: Important Facts to Note

Starbucks (SBUX) closed the most recent trading day at $111.69, moving -0.33% from the previous trading session. This change lagged the S&P 500's daily gain of 1.12%. At the same time, the Dow added 1.14%, and the tech-heavy Nasdaq gained 1.46%.The coffee chain's stock has climbed by 1.32% in the past month, exceeding the Retail-Wholesale sector's loss of 6.55% and the S&P 500's loss of 4.13%.Market participants will be closely following the financial results of Starbucks in its upcoming release. The company is predicted to post an EPS of $0.52, indicating a 23.53% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $8.88 billion, up 3.65% from the year-ago period.SBUX's full-year Zacks Consensus Estimates are calling for earnings of $2.99 per share and revenue of $37.42 billion. These results would represent year-over-year changes of -9.67% and +3.45%, respectively.Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Starbucks. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.36% lower. Starbucks presently features a Zacks Rank of #3 (Hold).With respect to valuation, Starbucks is currently being traded at a Forward P/E ratio of 37.47. This indicates a premium in contrast to its industry's Forward P/E of 23.58.Investors should also note that SBUX has a PEG ratio of 3.55 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Restaurants industry currently had an average PEG ratio of 2.4 as of yesterday's close.The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 70, placing it within the top 28% of over 250 industries.The Zacks Industry Rank gauges the strength of our 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.Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>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