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Starbucks (SBUX) Outpaces Stock Market Gains: What You Should Know

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In the latest close session, Starbucks (SBUX - Free Report) was up +2.34% at $93.28. The stock exceeded the S&P 500, which registered a gain of 0.26% for the day. Meanwhile, the Dow gained 0.6%, and the Nasdaq, a tech-heavy index, added 0.25%.

Coming into today, shares of the coffee chain had gained 6.97% in the past month. In that same time, the Retail-Wholesale sector gained 3.96%, while the S&P 500 gained 1.57%.

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 January 28, 2026. The company is predicted to post an EPS of $0.58, indicating a 15.94% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.65 billion, up 2.67% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.32 per share and revenue of $38.39 billion. These totals would mark changes of +8.92% and +3.23%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Starbucks. Recent revisions tend to reflect the latest near-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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 2.11% fall in the Zacks Consensus EPS estimate. Starbucks currently has a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Starbucks is presently being traded at a Forward P/E ratio of 39.26. This signifies a premium in comparison to the average Forward P/E of 20.28 for its industry.

It's also important to note that SBUX currently trades at a PEG ratio of 1.92. 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 had an average PEG ratio of 2.17 as trading concluded yesterday.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 205, putting it in the bottom 17% of all 250+ industries.

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.

To follow SBUX in the coming trading sessions, be sure to utilize Zacks.com.


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