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The latest trading session saw Starbucks (SBUX) ending at $82.79, denoting a +1.27% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 1.67%. Meanwhile, the Dow experienced a rise of 1.07%, and the technology-dominated Nasdaq saw an increase of 2.5%.
The the stock of coffee chain has fallen by 14.74% in the past month, lagging the Retail-Wholesale sector's loss of 4.21% and the S&P 500's loss of 6.57%.
The investment community will be paying close attention to the earnings performance of Starbucks in its upcoming release. The company is slated to reveal its earnings on April 29, 2025. The company's upcoming EPS is projected at $0.49, signifying a 27.94% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.79 billion, up 2.63% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.92 per share and a revenue of $37.25 billion, indicating changes of -11.78% and +2.95%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Starbucks. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 2.26% lower. Starbucks currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Starbucks is presently being traded at a Forward P/E ratio of 27.96. This signifies a premium in comparison to the average Forward P/E of 21.33 for its industry.
It is also worth noting that SBUX currently has a PEG ratio of 2.66. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 2.17.