Starbucks (SBUX) Laps the Stock Market: Here's Why

Core Insights - Starbucks (SBUX) stock closed at $87.11, up 2.24% from the previous session, outperforming the S&P 500's gain of 0.3% [1] - Over the past month, Starbucks shares have appreciated by 7.04%, while the Retail-Wholesale sector declined by 0.64% [1] Financial Performance Expectations - Analysts expect Starbucks to report earnings of $0.6 per share, reflecting a year-over-year decline of 13.04% [2] - Revenue is anticipated to be $9.64 billion, which is a 2.62% increase from the prior-year quarter [2] Fiscal Year Projections - For the entire fiscal year, earnings are projected at $2.4 per share, indicating a 12.68% increase, with revenue expected to reach $38.49 billion, up 3.5% from the previous year [3] - Recent changes in analyst estimates suggest optimism regarding Starbucks' business and profitability [3] Analyst Rating System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), indicates that Starbucks currently holds a Zacks Rank of 3 (Hold) [5] - Over the past month, the Zacks Consensus EPS estimate has decreased by 3.76% [5] Valuation Metrics - Starbucks has a Forward P/E ratio of 35.56, significantly higher than the industry average of 20.24, suggesting it is trading at a premium [6] - The PEG ratio for Starbucks is 1.74, compared to the Retail-Restaurants industry's average PEG ratio of 2.28 [7] Industry Context - The Retail-Restaurants industry is ranked 188 out of over 250 industries, placing it in the bottom 24% [7] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]