Starbucks Stock Rises While Market Declines: Key Insights

In the most recent trading session, Starbucks (SBUX) saw its stock close at $97.66, reflecting a positive change of +0.87% from the previous day's closing price. This performance is noteworthy, especially considering the broader market trends, where the S&P 500 experienced a daily decline of 0.92%. Similarly, the Dow Jones Industrial Average fell by 0.96%, while the technology-focused Nasdaq composite dipped even more significantly by 1.6%.

Starbucks Performance Overview

The stock of Starbucks has gained 2.51% in the past month, which exceeds the average gain of 1.69% for the Retail-Wholesale sector but is slightly below the S&P 500’s increase of 2.68% over the same period.

Upcoming Earnings Report

Investors and analysts alike are eagerly anticipating Starbucks' upcoming earnings report, scheduled for October 30, 2024. The company is projected to report an earnings per share (EPS) of $1.03, a decrease of 2.83% compared to the same quarter last year. Furthermore, consensus estimates suggest that Starbucks will generate revenue of approximately $9.33 billion, which signifies a slight decline of 0.49% year-over-year.

Analyst Sentiment

Changes in analyst estimates for Starbucks are also crucial to consider, as they can indicate shifts in expectations regarding the company's performance. Positive revisions to these estimates might reflect a more optimistic outlook for the business moving forward.

Importance of Estimate Changes

Research indicates that modifications in estimates often correlate with subsequent stock price movements. Investors can leverage this information through the Zacks Rank system, which evaluates these estimate changes within a straightforward rating framework. The Zacks Rank goes from #1 (Strong Buy) to #5 (Strong Sell) and has a proven history of success. Stocks rated #1 have produced an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate for Starbucks has decreased by 2.25%, and the company currently holds a Zacks Rank of #4 (Sell).

Valuation Metrics

In terms of stock valuation, Starbucks is trading at a Forward Price-to-Earnings (P/E) ratio of 25.18, which is higher than the average Forward P/E of 22.89 in its industry. It is also noteworthy that Starbucks has a PEG ratio of 2.14, which is similar to the industry average of 2.17 for Retail-Restaurants stocks.

Industry Ranking

Starbucks operates within the Retail-Restaurant industry, which is part of the broader Retail-Wholesale sector. This industry ranks 100 in the Zacks Industry Rank, placing it within the top 40% of over 250 industries evaluated.

Conclusion and Monitoring

Investors are encouraged to closely monitor these stock-related metrics for Starbucks in the coming trading sessions. For continuous updates and more detailed analysis, various financial platforms can provide insights and information.

Starbucks, Stocks, Earnings