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Starbucks (SBUX, $106.07) shares get price target cuts
Starbucks shares got their price targets lowered by several analysts.
The company’s earnings beat fourth-quarter results, as wider margins more than offset slightly weak comps. But, the company’s fiscal 2022 projection was below the Street forecasts.
BMO Capital analyst Andrew Strelzik slashed his price target on the coffee-bar company’s shares to $135 from $140, while keeping an outperform rating on the shares.
However, Strelzik indicated that while Covid-19 temporarily hurt sales trends, the fourth quarter results bolstered his belief that Starbucks' underlying margin potential is "underappreciated."
Stifel analyst Chris O'Cull lowered rating on Starbucks shares to hold from buy. O'Cull slashed price target to $112, from $130.
O'Cull cited significant inflationary pressures and investments and the magnitude of the cost pressure.
Wedbush analyst Nick Setyan cut his price target to $128 from $132, while keeping an outperform rating.
SBUX's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for SBUX turned positive on May 13, 2022. Looking at past instances where SBUX's MACD turned positive, the stock continued to rise in 31 of 53 cases over the following month. The odds of a continued upward trend are 58%.
Current price $72.42 crossed the support line at $71.32 and is trading between $80.77 resistance and $71.32 support lines. Throughout the month of 04/13/22 - 05/16/22, the price experienced a -10% Downtrend. During the week of 05/09/22 - 05/16/22, the stock fell -0.76%.
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where SBUX's RSI Oscillator exited the oversold zone, 16 of 28 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 57%.
The Stochastic Indicator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 32 of 58 cases where SBUX's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 55%.
Following a +8.67% 3-day Advance, the price is estimated to grow further. Considering data from situations where SBUX advanced for three days, in 186 of 333 cases, the price rose further within the following month. The odds of a continued upward trend are 56%.
SBUX may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Momentum Indicator moved below the 0 level on May 16, 2022. You may want to consider selling the stock, shorting the stock, or exploring put options on SBUX as a result. In 40 of 90 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 44%.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 49%.
The Aroon Indicator for SBUX entered a downward trend on May 16, 2022. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 48%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.33.
The Tickeron Valuation Rating of 12 (best 1 - 100 worst) indicates that the company is seriously 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 (10.201). P/E Ratio (20.202) is within average values for comparable stocks, (193.198). Projected Growth (PEG Ratio) (2.214) is also within normal values, averaging (2.185). Dividend Yield (0.025) settles around the average of (0.028) among similar stocks. P/S Ratio (2.838) is also within normal values, averaging (3.158).
The Tickeron SMR rating for this company is 25 (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 63 (best 1 - 100 worst), indicating steady 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 Profit vs. Risk Rating rating for this company is 64 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock slightly better than average.
The Tickeron PE Growth Rating for this company is 97 (best 1 - 100 worst), pointing to worse than average 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 industry includes companies that operate full-service restaurants, fast food restaurants, cafeterias and snack bars. McDonald's Corporation, Starbucks Corporation, YUM! Brands, Inc. and Restaurant Brands International Inc. are some of the largest U.S. restaurant-owning companies in terms of market capitalization. While restaurant spending could be viewed as discretionary for consumers, some companies in the business have been able to weather economic cycles by establishing strong loyalty among customers over the years. Many of them also have a strong global presence as well.
The average market capitalization across the Restaurants Industry is 5.3B. The market cap for tickers in the group ranges from 17.2K to 181.2B. MCD holds the highest valuation in this group at 181.2B. The lowest valued company is BBUCQ at 17.2K.
The average weekly price growth across all stocks in the Restaurants Industry was -2.26%. For the same Industry, the average monthly price growth was -10.89%, and the average quarterly price growth was -23.52%. LKNCY experienced the highest price growth at 18.43%, while COFE experienced the biggest fall at -38.18%.
- 5/5/22 4:57 AM: Starbucks (SBUX, $81.64) was a top weekly gainer, with a +9.23% jump
- 3/31/22 6:39 AM: Starbucks (SBUX, $91.03) was a top weekly gainer, with a +5.58% jump
- 3/19/22 4:49 AM: Starbucks (SBUX, $89.6) was a top weekly gainer, with a +8.3% jump
The average weekly volume growth across all stocks in the Restaurants Industry was 23.66%. For the same stocks of the Industry, the average monthly volume growth was 60.6% and the average quarterly volume growth was -22.16%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Negative Outlook today, backed by the Aroon Indicator. Tickeron has a negative outlook on this group and predicts a further decline by more than 4.00% within the next month with a likelihood of 36%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.39.
25 stocks in the group of tickers exhibit a similar negative trend based on the 15 indicator with an average likelihood of 73%.
The most notable companies in this group are McDonald's Corp (NYSE:MCD), Starbucks Corp (NASDAQ:SBUX), Chipotle Mexican Grill (NYSE:CMG), Yum! Brands (NYSE:YUM), Yum China Holdings (NYSE:YUMC), Darden Restaurants (NYSE:DRI), Domino's Pizza (NYSE:DPZ), Shake Shack (NYSE:SHAK), Noodles & Company (NASDAQ:NDLS).
The average market capitalization across the group is 7.1B. The market cap for tickers in the group ranges from 17.2K to 181.2B. MCD holds the highest valuation in this group at 181.2B. The lowest valued company is BBUCQ at 17.2K.
The average weekly price growth across all stocks in the group was -2.19%. For the same group, the average monthly price growth was -13.74%, and the average quarterly price growth was -28.2%. LKNCY experienced the highest price growth at 18.43%, while BROS experienced the biggest fall at -38%.
- 5/14/22 4:24 AM: Texas Roadhouse (TXRH, $78.54) was a top loser this week, declining -6.4%. Expect a Downtrend reversal
- 5/14/22 4:22 AM: Kisses from Italy (KITL, $0.03) was a top weekly gainer, with a +16.33% jump
- 5/14/22 4:22 AM: Luckin Coffee (LKNCY, $7.84) was a top weekly gainer, with a +9.04% jump
The average weekly volume growth across all stocks in the group was -19.75%. For the same stocks of the group, the average monthly volume growth was 161.96% and the average quarterly volume growth was 24.51%
- 5/5/22 4:51 AM: The volume for Bit Brother stock increased for three consecutive days, resulting in a record-breaking daily growth of 501% of the 65-Day Volume Moving Average
- 5/4/22 8:21 AM: The volume for Bit Brother stock increased for two consecutive days, resulting in a record-breaking daily growth of 700% of the 65-Day Volume Moving Average
- 4/9/22 5:21 AM: The volume for Rave Restaurant Group stock increased for four consecutive days, resulting in a record-breaking daily growth of 160% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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