Starbucks is scheduled to report earnings after today’s close. The stock hit a record high of $126.32/share in 2021 and is currently trading near $114/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Earnings Preview:
The company is expected to report a gain of $0.64/share on $8.39 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $0.65/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals:
The company is expected to grow its earnings by 15% in 2023 compared to 2022. The Street expects the company to grow its earnings by 20% in 2024 compared to 2023, which is very impressive considering the broader macro recessionary backdrop.
A Closer Look At The Technicals:
Technically, the stock bottomed in May 2022 and is up nearly 70% since then! That is very impressive considering the major indices bottomed in October 2022 and are high single digits or low double digits, depending on the index you look at since then. The bulls want to see it gap higher after earnings are announced. On the other hand, the bears want to see the stock fall sharply after earnings are announced.
Pay Attention To How The Stock Reacts To The News:
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclaimer: The stock has been featured in my FindLeadingStocks.com weekly stock market report.
Read the full article here
