Starbucks (SBUX) Falls More Steeply Than Broader Market: What Investors Need to Know

Core Viewpoint - Starbucks has experienced a decline in stock price and is facing challenges in earnings performance, with analysts projecting a decrease in both earnings per share and revenue for the upcoming quarter [1][5]. Company Summary - Starbucks shares have lost 9.96% in the past month, while the Retail-Wholesale sector gained 0.46% and the S&P 500 lost 0.36% [1]. - The Zacks Consensus Estimates predict earnings of $3.11 per share and revenue of$37.33 billion for the fiscal year, indicating changes of -6.04% and +3.18% from the previous year, respectively [2]. - The company has a PEG ratio of 2.71, compared to the industry average of 2.31, suggesting a higher valuation relative to expected earnings growth [3]. - Starbucks closed at $90.58, marking a -1.81$0.66, a 26.67% decrease from the same quarter last year, with revenue forecasted at $9.33 billion, down 1% from the prior-year quarter [5]. - Starbucks holds a Zacks Rank of 5 (Strong Sell), with a recent consensus EPS projection moving 0.25% lower [7]. - The company has a Forward P/E ratio of 29.65, which is higher than the industry average of 24.99, indicating it is trading at a premium [8]. Industry Summary - The Retail - Restaurants industry is part of the Retail-Wholesale sector and currently holds a Zacks Industry Rank of 80, placing it in the top 32% of over 250 industries [11].