Starbucks Corporation [NASDAQ: SBUX] shares went lower by -0.04% from its previous closing of 74.19, now trading at the price of $74.16, also subtracting -0.03 points. Is SBUX stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 9.43 million contracts. Compared to the average trading volume of SBUX shares, the company saw a far better performance. Moreover, the stock has a 1.17B float and a -4.76% run over in the last seven days. SBUX share price has been hovering between 99.72 and 50.02 lately, and is definitely worthy of attention.
Starbucks Corporation [NASDAQ:SBUX]: Analyst Rating and Earnings
Pro stock market traders often keep their attention pointed at what top market analysts have to say regarding a potential equity investment. On average, stock market experts give SBUX an Overweight rating. The average 12-month price forecast for this stock is $74.16, with the high estimate being $92.00, the low estimate being $70.00 and the median estimate amounting to $77.00. This is compared to its latest closing price of $74.19.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Starbucks Corporation [SBUX] is sitting at 3.77. This is compared to 1 month ago, when its average rating was 3.65.
Keep your eyes peeled for this company’s upcoming financial results publication, which is slated for 07/28/2020.
Fundamental Analysis of Starbucks Corporation [SBUX]
Now let’s turn to look at profitability: with a current Operating Margin for Starbucks Corporation [SBUX] sitting at 16.90% and its Gross Margin at 26.90%, this company’s Net Margin is now 12.70. These measurements indicate that Starbucks Corporation [SBUX] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 49.81, and its Return on Invested Capital has reached 47.02. Its Return on Equity is -54.60%, and its Return on Assets is 14.20%. These metrics show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates SBUX financial performance.
Similarly, its Total Debt to Total Capital is 224.58, while its Total Debt to Total Assets stands at 58.46.
What about valuation? This company’s Enterprise Value to EBITDA is 18.07 and its Total Debt to EBITDA Value is 2.10. The Enterprise Value to Sales for this firm is now 3.63, and its Total Debt to Enterprise Value stands at 0.10.
Starbucks Corporation [SBUX] has 1.17B shares outstanding, amounting to a total market cap of 86.68B. Its stock price has been found in the range of 50.02 to 99.72. At its current price, it has moved down by -25.63% from its 52-week high, and it has moved up 48.26% from its 52-week low.
This stock’s Beta value is currently 0.80, which indicates that it is 3.36% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 53.84. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Starbucks Corporation [SBUX] a Reliable Buy?
Shares of Starbucks Corporation [SBUX], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.