SBUX stock outperformance

PARAGRAPH 1 --- What happened: Starbucks (SBUX) stock has outperformed the market in 2026, driven by turnaround progress that leads management to expect adjusted earnings per share to rise 73% by fiscal 2028. Meanwhile, Costco (COST) has also delivered strong stock performance this year, outpacing Amazon (AMZN) despite Amazon's potential AI advantages.

PARAGRAPH 2 --- Market impact: This narrative affects consumer-facing stocks and retailers. SBUX's outperformance signals investor confidence in its turnaround, while COST's strong performance highlights the appeal of its business model. AMZN's valuation, however, remains attractive, potentially drawing investors seeking value in the sector.

PARAGRAPH 3 --- What to watch next: Investors should monitor SBUX's Q1 FY2027 earnings (released Feb 2, 2027), which will provide updates on its turnaround progress. Additionally, watch for any significant changes in consumer spending trends, which could impact both SBUX and COST. Lastly, track AMZN's AI initiatives and their potential impact on its valuation and stock performance.