On September 19, 2023, Starbucks Corporation (NASDAQ: SBUX) experienced a significant downgrade as TD Cowen analysts revised their outlook from Outperform to Market Perform. Alongside this revision, the analysts also adjusted the price target by $10, reflecting a more cautious stance. The downgrade was primarily driven by a decline in consumer spending within China, which subsequently impacted store revenue. Moreover, the prevailing macroeconomic environment in the country added an element of uncertainty. Consequently, Starbucks witnessed a decline of 1.7% in its share value.
Starbucks Corporation
SBUX
Neutral
Updated on: 05/12/2023
Financial Health
Weak
Debt to equity ratio: Strong Sell
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Sell
DCF: Strong Buy
ROE: Neutral
Starbucks Stock Performance on September 19, 2023: Stable with Positive Outlook for Future Earnings Growth
On September 19, 2023, Starbucks (SBUX) stock opened at $95.24, slightly lower than the previous day’s closing price of $96.76. Throughout the day, the stock traded within a range of $94.61 to $95.44. The trading volume for the day was 62,859, which is significantly lower than the average volume of 6,317,197 over the past three months.
With a market capitalization of $110.2 billion, Starbucks is a major player in the restaurant industry. Despite facing challenges in the previous year, the company managed to achieve a revenue growth of 10.91%. However, its earnings growth for the same period was -20.21%. Fortunately, Starbucks has shown improvement this year with a positive earnings growth of +15.64%.
Looking ahead, the company’s earnings growth is projected to continue increasing over the next five years, with an estimated growth rate of +18.21%. This positive outlook suggests that Starbucks is on track to recover from its previous setbacks and regain profitability.
In terms of valuation, Starbucks has a P/E ratio of 28.9, indicating that investors are willing to pay a premium for the stock. The price/sales ratio stands at 3.03, which suggests that the company’s sales are valued at a moderate level compared to its market capitalization.
Starbucks operates in the consumer services sector, specifically in the restaurant industry. As a global coffeehouse chain, the company has its corporate headquarters in Seattle, Washington.
On September 19, 2023, Starbucks’ stock performance was relatively stable compared to some of its industry peers. Chipotle (CMG) experienced a decline of -1.67%, Yum! Brands (YUM) saw a decrease of -1.14%, and Restaurant Brands International (QSR) had a decline of -1.52%. On the other hand, Yum China Holdings (YUMC) remained unchanged.
Investors can look forward to the next reporting date on November 3, 2023, when Starbucks will release its financial results for the current quarter. Analysts are forecasting an earnings per share of $0.99 for this quarter.
In conclusion, Starbucks’ stock performance on September 19, 2023, was relatively stable, with a slight decrease in the opening price. Despite facing challenges in the previous year, the company has shown improvement in its earnings growth this year. With a positive outlook for the next five years and a strong presence in the restaurant industry, Starbucks remains an attractive investment option for investors.
Starbucks Corp: Analysts Predict 16.11% Increase in Stock Price, Hold Rating Suggests Neutral Sentiment
On September 19, 2023, Starbucks Corp had a median target price of $110.00, according to 26 analysts offering 12-month price forecasts. The high estimate for the stock price was $150.00, while the low estimate was $101.00. This median estimate represented a 16.11% increase from the last price of $94.74.
The consensus among 30 polled investment analysts was to hold stock in Starbucks Corp. This rating has remained steady since August, indicating a neutral sentiment towards the stock.
Starbucks Corp reported earnings per share of $0.99 for the current quarter. The company’s sales for the same period stood at $9.4 billion. The reporting date for these figures was set for November 3.
The analysts’ median target price of $110.00 suggests that they have a positive outlook on Starbucks Corp’s future performance. This indicates that they expect the stock to increase by 16.11% over the next 12 months. However, it is important to note that the high estimate of $150.00 and the low estimate of $101.00 show a wide range of expectations among analysts.
The hold rating from investment analysts indicates that there is no strong recommendation to buy or sell the stock at the moment. This suggests that there may be mixed opinions on the company’s prospects.
Investors should consider these forecasts and ratings alongside other factors such as the company’s financial health, competitive landscape, and industry trends before making any investment decisions. It is always advisable to conduct thorough research and seek professional advice when investing in stocks.
Discussion about this post