In the latest close session, Starbucks (SBUX) was up +1.69% at $92.29. The stock's performance was ahead of the S&P 500's daily loss of 0.06%. On the other hand, the Dow registered a gain of 0.38%, and the technology-centric Nasdaq decreased by 0.44%.
The coffee chain's stock has dropped by 8.09% in the past month, falling short of the Retail-Wholesale sector's gain of 1.66% and the S&P 500's gain of 2.36%.
The investment community will be paying close attention to the earnings performance of Starbucks in its upcoming release. The company is slated to reveal its earnings on October 29, 2026. The company is forecasted to report an EPS of $0.72, showcasing a 38.46% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $9.25 billion, down 3.3% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.59 per share and a revenue of $38.02 billion, representing changes of +21.6% and +2.26%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Starbucks. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.8% upward. Starbucks currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Starbucks is currently being traded at a Forward P/E ratio of 28.74. This denotes a premium relative to the industry average Forward P/E of 19.88.
We can additionally observe that SBUX currently boasts a PEG ratio of 1.31. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Restaurants industry currently had an average PEG ratio of 1.77 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 102, finds itself in the top 42% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Starbucks Corporation (SBUX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).