Starbucks (SBUX) Surges 11.3%: Is This an Indication of Further Gains?

Starbucks (SBUX) shares soared 11.3% in the last trading session to close at $88.68. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 20% loss over the past four weeks.Following President Trump's announcement to suspend U.S. tariffs on most countries for 90 days, Starbucks shares soared, reflecting renewed investor optimism.This coffee chain is expected to post quarterly earnings of $0.51 per share in its upcoming report, which represents a year-over-year change of -25%. Revenues are expected to be $8.85 billion, up 3.4% from the year-ago quarter.Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.For Starbucks, the consensus EPS estimate for the quarter has been revised 1.6% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on SBUX going forward to see if this recent jump can turn into more strength down the road.The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>Starbucks is a member of the Zacks Retail - Restaurants industry. One other stock in the same industry, Shake Shack (SHAK), finished the last trading session 15.5% higher at $87.62. SHAK has returned -12.6% over the past month.Shake Shack's consensus EPS estimate for the upcoming report has changed -0.2% over the past month to $0.16. Compared to the company's year-ago EPS, this represents a change of +23.1%. Shake Shack currently boasts a Zacks Rank of #3 (Hold).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 +23.9% 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 Report Shake Shack, Inc. (SHAK): 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