SBUX Stock Analysis — Starbucks Corporation
Sector: Consumer Staples
AI Verdict
Starbucks trades at 42.4x next year's earnings—double the sector median—but the expected 90.0% EPS growth is unusually high for a consumer staple, so you're getting a rare shot at high growth if the digital moat holds up.
Competitive Moat
Starbucks commands a premium through its global store network, brand loyalty, and digital ecosystem, which together create high switching costs for regular coffee drinkers. Its proprietary rewards app and store experience make it difficult for competitors to replicate its customer retention engine.
Summary
Starbucks is notable right now for analysts projecting a 90.0% jump in earnings next year, a rare acceleration for a mature consumer brand.
Where It Stands
Starbucks has returned 15.28% over the past year, trades at 42.4x forward earnings versus the consumer staples median of 20x, and its RSI of 48.7 signals neutral momentum.
Key Metrics
- RSI: 48.7 — Neutral
- Trailing P/E: 80.6x
- Forward P/E: 42.4x
- PEG Ratio: 0.90
- Earnings Growth: +0.9%
- Revenue Growth: +0.0%
- Market Cap: $110.6B
- Dividend Yield: 0.03%
- 1-Year Return: 15.28%
- 52-Week High: $104.82
- 52-Week Low: $75.50
Analyst Consensus
22 Buy · 20 Hold · 6 Sell (48 analysts)
Bull Case
With forward EPS growth expected at 90.0%, the 42.4x forward P/E is cheap for the growth on offer if Starbucks delivers on its digital and international expansion.
Bear Case
If the P/E falls from 42.4x to the sector median of 20x, the stock would lose over 50% of its value even if earnings deliver, and the current RSI of 48.7 offers little technical support.
Catalyst to Watch
Watch for quarterly earnings and app engagement metrics—if EPS or digital growth underwhelm, the high P/E could quickly compress.