Why Starbucks (SBUX) Dipped More Than Broader Market Today

Starbucks (SBUX) ended the recent trading session at $84.21, demonstrating a -1.22% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.74%. Meanwhile, the Dow experienced a drop of 0.63%, and the technology-dominated Nasdaq saw a decrease of 0.76%. Shares of the coffee chain witnessed a gain of 0.06% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 0.41%, and underperforming the S&P 500's gain of 0.79%.Analysts and investors alike will be keeping a close eye on the performance of Starbucks in its upcoming earnings disclosure. The company is expected to report EPS of $0.59, down 14.49% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.65 billion, up 2.65% from the year-ago period. In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.35 per share and a revenue of $38.39 billion, indicating changes of +10.33% and +3.24%, respectively, from the former year. Investors should also take note of any recent adjustments to analyst estimates for Starbucks. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, the Zacks Consensus EPS estimate has moved 3.01% lower. Starbucks is holding a Zacks Rank of #5 (Strong Sell) right now. From a valuation perspective, Starbucks is currently exchanging hands at a Forward P/E ratio of 36.34. For comparison, its industry has an average Forward P/E of 19.8, which means Starbucks is trading at a premium to the group. One should further note that SBUX currently holds a PEG ratio of 1.77. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.3 based on yesterday's closing prices. The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 212, putting it in the bottom 15% of all 250+ industries. The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. You can find more information on all of these metrics, and much more, on Zacks.com. Zacks Naming Top 10 Stocks for 2026Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Starbucks Corporation (SBUX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks