Starbucks (SBUX) closed at $97.66 in the latest trading session, marking a +0.87% move from the prior day. This move outpaced the S&P 500's daily loss of 0.92%. Elsewhere, the Dow lost 0.96%, while the tech-heavy Nasdaq lost 1.6%.

The coffee chain's stock has climbed by 2.51% in the past month, exceeding the Retail-Wholesale sector's gain of 1.69% and lagging the S&P 500's gain of 2.68%.

The investment community will be closely monitoring the performance of Starbucks in its forthcoming earnings report. The company is scheduled to release its earnings on October 30, 2024. The company is expected to report EPS of $1.03, down 2.83% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $9.33 billion, indicating a 0.49% decrease compared to the same quarter of the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Starbucks. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.25% lower. Starbucks is holding a Zacks Rank of #4 (Sell) right now.

With respect to valuation, Starbucks is currently being traded at a Forward P/E ratio of 25.18. This represents a premium compared to its industry's average Forward P/E of 22.89.

Investors should also note that SBUX has a PEG ratio of 2.14 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.17 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 100, putting it in the top 40% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.