Starbucks (SBUX) Increases Despite Market Slip: Here's What You Need to Know

In the latest trading session, Starbucks (SBUX) closed at $97.66, reflecting a +0.87% change from the previous day's close. This performance stands in contrast to broader market trends, as the S&P 500 experienced a daily decline of 0.92%, the Dow fell by 0.96%, and the tech-heavy Nasdaq dropped 1.6%.

Starbucks Stock Performance

Over the past month, Starbucks stock has shown a positive trend, rising by 2.51%. This growth surpasses the Retail-Wholesale sector's gain of 1.69%, although it trails behind the S&P 500's increase of 2.68% during the same period.

Upcoming Earnings Report

Investors are keenly awaiting Starbucks' upcoming earnings report, scheduled for October 30, 2024. Analysts forecast that the company will report earnings per share (EPS) of $1.03, which represents a decline of 2.83% from the year-ago quarter. Additionally, the consensus estimate for revenue stands at $9.33 billion, indicating a slight decrease of 0.49% compared to the same time last year.

Analyst Estimates and Outlook

Changes in analyst estimates for Starbucks will also be crucial for investors to monitor. Recent revisions often indicate shifts in business trends and can reflect optimism regarding the company's performance. Positive estimate revisions may suggest a favorable outlook for the stock price, allowing investors to make informed decisions.

Zacks Rank and Stock Valuation

The Zacks Rank system, which spans from #1 (Strong Buy) to #5 (Strong Sell), has a proven record of helping investors identify promising stock opportunities. Over the last 30 days, the Zacks Consensus EPS estimate for Starbucks has declined by 2.25%, leading to a Zacks Rank of #4 (Sell) for the company at this time.

Valuation Metrics

In terms of valuation, Starbucks is currently trading with a Forward P/E ratio of 25.18, which is higher than the industry average of 22.89. The PEG ratio for SBUX stands at 2.14, slightly below the Retail-Restaurants industry average of 2.17. The PEG ratio is a valuable metric that accounts for the company's expected earnings growth rate in addition to its P/E ratio.

Industry Outlook

The Retail-Restaurants industry, part of the broader Retail-Wholesale sector, holds a Zacks Industry Rank of 100. This ranking places it within the top 40% of all industries, suggesting a favorable operating environment compared to others.

Final Thoughts

Investors are encouraged to stay updated on Starbucks' stock performance and related metrics as the company approaches its earnings report. Understanding these nuances can inform better investment decisions and capitalize on potential market movements.

Starbucks, Stocks, Earnings