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Starbucks (SBUX) closed at $81.50 in the latest trading session, marking a +0.92% move from the prior day. This change outpaced the S&P 500's 0.13% gain on the day. Meanwhile, the Dow lost 1.33%, and the Nasdaq, a tech-heavy index, lost 0.13%.
The coffee chain's stock has dropped by 18.58% in the past month, falling short of the Retail-Wholesale sector's loss of 5.65% and the S&P 500's loss of 6.3%.
The upcoming earnings release of Starbucks will be of great interest to investors. The company's earnings report is expected on April 29, 2025. The company is expected to report EPS of $0.49, down 27.94% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.8 billion, up 2.78% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.93 per share and a revenue of $37.26 billion, signifying shifts of -11.48% and +3.01%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, the Zacks Consensus EPS estimate has moved 1.93% lower. At present, Starbucks boasts a Zacks Rank of #4 (Sell).
With respect to valuation, Starbucks is currently being traded at a Forward P/E ratio of 27.52. This valuation marks a premium compared to its industry's average Forward P/E of 20.83.
We can additionally observe that SBUX currently boasts a PEG ratio of 2.6. 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 Retail - Restaurants industry currently had an average PEG ratio of 2.05 as of yesterday's close.
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 16% of all industries, numbering over 250.