adplus-dvertising

Starbucks (SBUX) Gains As Market Dips: What You Should Know

You’re reading Entrepreneur United States, an international franchise of Entrepreneur Media.

In the latest trading session, Starbucks (SBUX) closed at $119.34, marking a +0.46% move from the previous day. The stock outpaced the S&P 500’s daily loss of 0.77%.

– Zacks

Heading into today, shares of the coffee chain had gained 2.63% over the past month, outpacing the Retail-Wholesale sector’s gain of 0.63% and the S&P 500’s gain of 1.55% in that time.

SBUX will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.01, up 98.04% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.3 billion, up 33.79% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.25 per share and revenue of $29.21 billion. These totals would mark changes of +177.78% and +24.19%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for SBUX. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% higher. SBUX is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, SBUX is holding a Forward P/E ratio of 36.55. Its industry sports an average Forward P/E of 25.36, so we one might conclude that SBUX is trading at a premium comparatively.

We can also see that SBUX currently has a PEG ratio of 3.05. 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. SBUX’s industry had an average PEG ratio of 2.77 as of yesterday’s close.

The Retail – Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 120, putting it in the top 48% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. 

See 3 crypto-related stocks 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
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Stay connected with us on social media platform for instant update click here to join our  Twitter, & Facebook

We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.

For all the latest Education News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! TechiLive.in is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.