Starbucks Stock Buy Hold or Sell Recommendation

SBUX
 Stock
  

USD 105.05  1.68  1.63%   

Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Starbucks is 'Strong Buy'. Macroaxis provides Starbucks buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding SBUX positions. The advice algorithm takes into account all of Starbucks' available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Starbucks' buy-and-hold perspective. Additionally, take a look at Starbucks Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Starbucks and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Starbucks.

Execute Starbucks Buy or Sell Advice

The Starbucks recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Starbucks. Macroaxis does not own or have any residual interests in Starbucks or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Starbucks' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell StarbucksBuy Starbucks
Strong Buy

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Details

Financial Strenth (F Score)

Details

Financial Leverage

Details

Reporting Quality (M-Score)

Details
For the selected time horizon Starbucks has a Risk Adjusted Performance of 0.2363, Jensen Alpha of 0.2348, Total Risk Alpha of 0.1758, Sortino Ratio of 0.113 and Treynor Ratio of 0.3413
Macroaxis provides recommendation on Starbucks to complement and cross-verify current analyst consensus on Starbucks. Our trade recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Starbucks is not overpriced, please validate all Starbucks fundamentals, including its price to earning, cash flow from operations, current liabilities, as well as the relationship between the cash and equivalents and beta . Given that Starbucks has a price to sales of 3.68 X, we advise you to double-check Starbucks market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Starbucks Trading Alerts and Improvement Suggestions

Starbucks has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations
The company currently holds 13.12 B in liabilities with Debt to Equity (D/E) ratio of 807.4, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Starbucks has a current ratio of 0.75, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Debt can assist Starbucks until it has trouble settling it off, either with new capital or with free cash flow. So, Starbucks' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Starbucks sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Starbucks to invest in growth at high rates of return. When we think about Starbucks' use of debt, we should always consider it together with cash and equity.
About 72.0% of Starbucks shares are owned by institutional investors
On 25th of November 2022 Starbucks paid $ 0.53 per share dividend to its current shareholders
Latest headline from news.google.com: Starbucks Hard Pass Here - Seeking Alpha

Starbucks Returns Distribution Density

The distribution of Starbucks' historical returns is an attempt to chart the uncertainty of Starbucks' future price movements. The chart of the probability distribution of Starbucks stock daily returns describes the distribution of returns around its average expected value. We use Starbucks price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Starbucks returns is essential to provide solid investment advice for Starbucks.
Mean Return0.36Value At Risk-2.9
Potential Upside4.49Standard Deviation2.34
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Starbucks historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Starbucks Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Starbucks is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Starbucks backward and forwards among themselves. Starbucks' institutional investor refers to the entity that pools money to purchase Starbucks' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Zwj Investment Counsel IncCommon SharesK249 K
Zwj Investment Counsel IncCommon Shares2.8 K215 K
Zwj Investment Counsel IncCommon Shares2.8 K254 K
Zwj Investment Counsel IncCommon Shares2.8 K326 K
Zwj Investment Counsel IncCommon Shares2.9 K319 K
Zwj Investment Counsel IncCommon Shares2.9 K321 K
Zwj Investment Counsel IncCommon Shares2.9 K314 K
Note, although Starbucks' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Starbucks Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Starbucks or Hotels, Restaurants & Leisure sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Starbucks' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Starbucks stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
0.23
β
Beta against NYSE Composite1.03
σ
Overall volatility
2.35
Ir
Information ratio 0.10

Starbucks Volatility Alert

Starbucks currently demonstrates below-average downside deviation. It has Information Ratio of 0.1 and Jensen Alpha of 0.23. However, we advise investors to further question Starbucks expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Starbucks' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Starbucks' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Starbucks Implied Volatility

Starbucks' implied volatility exposes the market's sentiment of Starbucks stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Starbucks' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Starbucks stock will not fluctuate a lot when Starbucks' options are near their expiration.

Starbucks Fundamentals Vs Peers

Comparing Starbucks' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Starbucks' direct or indirect competition across all of the common fundamentals between Starbucks and the related equities. This way, we can detect undervalued stocks with similar characteristics as Starbucks or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Starbucks' fundamental indicators could also be used in its relative valuation, which is a method of valuing Starbucks by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Starbucks to competition
FundamentalsStarbucksPeer Average
Return On Asset0.09 %(0.14) %
Profit Margin0.10 %(1.27) %
Operating Margin0.14 %(5.51) %
Current Valuation134.9 B16.62 B
Shares Outstanding1.15 B571.82 M
Shares Owned by Insiders0.18 %10.09 %
Shares Owned by Institutions71.91 %39.21 %
Number of Shares Shorted15.13 M4.71 M
Price to Earning35.18 X28.72 X
Price to Sales3.68 X11.42 X
Revenue32.25 B9.43 B
Gross Profit8.39 B27.38 B
EBITDA6.24 B3.9 B
Net Income3.28 B570.98 M
Cash and Equivalents3.18 B2.7 B
Cash per Share2.77 X5.01 X
Total Debt13.12 B5.32 B
Debt to Equity807.40 %48.70 %
Current Ratio0.77 X2.16 X
Book Value Per Share(3.58) X1.93 K
Cash Flow from Operations4.4 B971.22 M
Short Ratio1.69 X4.00 X
Earnings Per Share2.83 X3.12 X
Price to Earnings To Growth2.18 X4.89 X
Target Price98.4
Number of Employees402 K18.84 K
Beta0.86-0.15
Market Capitalization118.65 B19.03 B
Total Asset27.98 B29.47 B
Retained Earnings3.69 B9.33 B
Working Capital211.1 M1.48 B
Current Asset4.76 B9.34 B
Current Liabilities4.55 B7.9 B
   Acquisition by Narasimhan Laxman of 43912 shares of Starbucks Corp subject to Rule 16b-3 [view details]

Starbucks Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Starbucks . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Starbucks Buy or Sell Advice

When is the right time to buy or sell Starbucks? Buying financial instruments such as Starbucks Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2010 2017 2022 (projected)
Receivables870.4 M1.24 B1.02 B
Inventories1.36 B2.18 B1.88 B

Use Investing Ideas to Build Portfolios

In addition to having Starbucks in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Trading Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Trading theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Trading Theme or any other thematic opportunities.
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Additionally, take a look at Starbucks Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

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Is Starbucks' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Starbucks. If investors know Starbucks will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Starbucks listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
(0.49) 
Market Capitalization
118.6 B
Quarterly Revenue Growth YOY
0.033
Return On Assets
0.0936
The market value of Starbucks is measured differently than its book value, which is the value of Starbucks that is recorded on the company's balance sheet. Investors also form their own opinion of Starbucks' value that differs from its market value or its book value, called intrinsic value, which is Starbucks' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Starbucks' market value can be influenced by many factors that don't directly affect Starbucks' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Starbucks' value and its price as these two are different measures arrived at by different means. Investors typically determine Starbucks value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Starbucks' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.