Starbucks(US:SBUX) ZACKS·2024-12-23 23:51Core Viewpoint - Starbucks is experiencing a decline in stock performance and earnings estimates, indicating potential challenges ahead for the company. Financial Performance - Starbucks closed at $87.44, reflecting a -0.6% change from the previous session, underperforming the S&P 500's gain of 0.73% [1] - Full-year earnings estimates are projected at $3.11 per share, representing a year-over-year decline of -6.04%, while revenue is expected to be $37.33 billion, showing a growth of +3.18% [2] - Anticipated earnings per share (EPS) for the upcoming release is $0.66, a decrease of 26.67% compared to the same quarter last year, with quarterly revenue expected to be $9.33 billion, down 1% from the previous year [4] Valuation Metrics - Starbucks has a Forward P/E ratio of 28.28, which is higher than the industry average of 24.91, indicating that Starbucks is trading at a premium [3] - The company holds a PEG ratio of 2.58, compared to the industry average PEG ratio of 2.28, suggesting a higher valuation relative to its projected earnings growth [6] Stock Performance - The stock has decreased by 14.18% over the past month, underperforming the Retail-Wholesale sector's gain of 3.93% and the S&P 500's gain of 0.34% [8] Analyst Sentiment - Recent changes in analyst estimates for Starbucks indicate a shifting business landscape, with positive revisions suggesting a favorable outlook on the company's health and profitability [9] - The Zacks Rank for Starbucks is currently 5 (Strong Sell), with a consensus EPS projection that has moved 0.25% lower in the past 30 days [10]