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Starbucks (SBUX) Rises Higher Than Market: Key Facts

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In the latest trading session, Starbucks (SBUX - Free Report) closed at $99.33, marking a +1.49% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 1.02%, and the Nasdaq, a tech-heavy index, lost 0.02%.

The stock of coffee chain has risen by 3.13% in the past month, lagging the Retail-Wholesale sector's gain of 4.46% and overreaching the S&P 500's gain of 0.67%.

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. On that day, Starbucks is projected to report earnings of $0.72 per share, which would represent year-over-year growth of 38.46%. Our most recent consensus estimate is calling for quarterly revenue of $9.25 billion, down 3.3% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $2.6 per share and a revenue of $38.03 billion, demonstrating changes of +22.07% and +2.28%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for Starbucks. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% higher. Starbucks is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Starbucks has a Forward P/E ratio of 30.96 right now. This indicates a premium in contrast to its industry's Forward P/E of 20.83.

One should further note that SBUX currently holds a PEG ratio of 1.41. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.78 based on yesterday's closing prices.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 37% of all 250+ industries.

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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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