Starbucks 161st Volume Rank Marks 20.3 Drop as Analysts Downgrade Earnings 26.3

Generated by AI AgentAinvest Volume Radar
Friday, Aug 29, 2025 8:13 pm ET1min read
Aime RobotAime Summary

- Starbucks closed +0.19% at $88.11 with 161st volume rank due to 20.3% daily drop in $0.55B trading.

- Analysts downgraded earnings 26.3% YoY for current quarter, with Zacks #4 (Sell) rating from persistent negative revisions.

- Despite 3.9% revenue growth, Starbucks underperformed with 23.08% EPS miss and Zacks D valuation score vs. peers.

- Historical returns show -4.66% YTD vs. S&P 500's +15.53%, highlighting valuation-earnings misalignment risks.

On August 29, 2025,

(SBUX) closed with a 0.19% gain, trading at $88.11. The stock saw a trading volume of $0.55 billion, a 20.3% decline from the previous day’s activity, ranking it 161st in volume among listed equities.

Recent analyst activity highlights bearish sentiment. Earnings estimates for Starbucks have been downgraded significantly over the past month. For the current quarter, the consensus EPS forecast stands at $0.59, reflecting a 26.3% decline year-over-year. The Zacks Consensus Estimate for the current fiscal year has dropped 6.7% in the last 30 days, while the next fiscal year’s estimate shows a 4.8% decline. The Zacks Rank for Starbucks is #4 (Sell), driven by persistent negative revisions in earnings forecasts and weak short-term performance relative to the S&P 500.

Revenue growth remains muted. For the current quarter, Starbucks is projected to generate $9.43 billion, up 3.9% year-over-year. However, this follows a recent quarterly revenue report of $9.46 billion, which exceeded estimates by 1.68% but fell short on earnings with a 23.08% EPS miss. The company has only topped earnings estimates once in the last four quarters, despite outperforming revenue forecasts three times. Forward-looking revenue estimates for the next fiscal year show a modest 6% increase to $39.27 billion.

Valuation metrics indicate Starbucks trades at a premium to its peers, earning a Zacks Value Style Score of D. This suggests the stock is currently priced higher than its intrinsic value relative to industry benchmarks. Analysts note that while revenue growth is stable, earnings declines and valuation pressures could weigh on near-term performance.

Historical backtesting of Starbucks’ stock shows a -4.66% return over the past year compared to the S&P 500’s +15.53%. The stock has underperformed its benchmark, with a -1.50% year-to-date return versus the S&P 500’s +9.84%. These metrics underscore the challenges in aligning current valuations with earnings trends.

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