Can Starbucks continue its upward trend?
Starbucks (Nasdaq: SBUX) has been on an incredible run since last June with the stock jumping almost 72% from the low to the high. The stock bottomed at $46.33 last June and rallied to a high of $79.65 recently. Even in the fourth quarter when most stocks lost tremendous ground, Starbucks was actually up.
The stock did pull back a little in December and the low from then combined with the lows from January have created the lower rail of an upwardly sloping trend channel. The upper rail connects the highs from February, April, and May. The pullback over the last few weeks has brought the stock back down to the lower rail and to the 50-day moving average.
You can also see that the daily stochastic readings just hit oversold territory for the first time since December. The indicators made a bullish crossover on May 30. The last time they did this, the stock rallied from $61 to $71 within two months.
In addition to the possible bullish signs from the chart, the Tickeron AI Trend Prediction Engine just generated a bullish signal for Starbucks on May 29. The signal showed a confidence level of 76% while previous signals on the stock have been successful 74% of the time. The signal calls for a move of at least 4% over the next month.
Aroon Indicator for SBUX shows an upward move is likely
SBUX's Aroon Indicator triggered a bullish signal on December 05, 2024. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 208 similar instances where the Aroon Indicator showed a similar pattern. In of the 208 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SBUX advanced for three days, in of 292 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on December 09, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on SBUX as a result. In of 98 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for SBUX turned negative on December 05, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 53 similar instances when the indicator turned negative. In of the 53 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SBUX declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
SBUX broke above its upper Bollinger Band on November 22, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. SBUX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (10.778). P/E Ratio (30.423) is within average values for comparable stocks, (57.470). Projected Growth (PEG Ratio) (2.037) is also within normal values, averaging (1.858). Dividend Yield (0.023) settles around the average of (0.037) among similar stocks. P/S Ratio (3.166) is also within normal values, averaging (8.704).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 82, placing this stock slightly better than average.
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Fundamental Analysis Ratings
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General Information
a producer of coffee and tea
Industry Restaurants