Starbucks (SBUX) ended the recent trading session at $95.92, demonstrating a -1.05% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.78%. Elsewhere, the Dow saw an upswing of 1.14%, while the tech-heavy Nasdaq appreciated by 0.61%.
Prior to today's trading, shares of the coffee chain had gained 5.95% outpaced the Retail-Wholesale sector's gain of 5.49% and the S&P 500's gain of 5.88%.
Analysts and investors alike will be keeping a close eye on the performance of Starbucks in its upcoming earnings disclosure. The company's earnings report is set to go public on July 29, 2025. The company's earnings per share (EPS) are projected to be $0.64, reflecting a 31.18% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $9.29 billion, showing a 1.89% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.47 per share and a revenue of $36.87 billion, representing changes of -25.38% and +1.92%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Starbucks. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.06% decrease. Currently, Starbucks is carrying a Zacks Rank of #4 (Sell).
In terms of valuation, Starbucks is currently trading at a Forward P/E ratio of 39.21. This signifies a premium in comparison to the average Forward P/E of 21.45 for its industry.
Also, we should mention that SBUX has a PEG ratio of 6.69. 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. The Retail - Restaurants industry currently had an average PEG ratio of 2.62 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 160, this industry ranks in the bottom 36% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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 ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
