In the latest trading session, Starbucks (SBUX) closed at $97.62, marking a +1.87% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.03%. Elsewhere, the Dow saw a downswing of 0.58%, while the tech-heavy Nasdaq appreciated by 0.28%.
Shares of the coffee chain witnessed a gain of 13.31% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 4.8%, and the S&P 500's gain of 0.6%.
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 January 28, 2026. On that day, Starbucks is projected to report earnings of $0.58 per share, which would represent a year-over-year decline of 15.94%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.63 billion, up 2.49% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.33 per share and revenue of $38.32 billion, which would represent changes of +9.39% and +3.06%, respectively, from the prior year.
Investors might also notice recent changes to 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.96% lower. At present, Starbucks boasts a Zacks Rank of #4 (Sell).
In the context of valuation, Starbucks is at present trading with a Forward P/E ratio of 41.09. This valuation marks a premium compared to its industry average Forward P/E of 20.56.
We can also see that SBUX currently has a PEG ratio of 2.02. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Retail - Restaurants industry stood at 2.13 at the close of the market yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 210, this industry ranks in the bottom 15% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Starbucks Corporation (SBUX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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