Starbucks (SBUX, $71.50) to bet on food start-ups for future growth
Ahead of its annual shareholders meeting on Wednesday, Starbucks announced it would target two areas: food start-ups and improving its in-store experience to achieve future growth.
The company announced that it plans to invest $100 million in a new venture fund with Valor Equity Partners, which has previously invested in Tesla and SpaceX.
Over the last couple of years, investing in start-ups had become increasingly popular amongst the different food companies owing to the rapidly changing taste of customers.
Faced by a similar issue, this investment provides Starbucks a window of opportunity to achieve future growth as it tries to address less customer footfall for its calorie-heavy Frappucinos. Adopting a similar strategy, struggling food giant Kraft Heinz launched its own fund in October, following the example of Big Food rivals Campbell Soup, Kellogg and General Mills.
Further the Seattle-based coffee giant announced that starting this summer, the company would focus on improving the store experience for customers by upgrading its stores. Stores at the New York City locations would be the first ones to undergo upgrades.
Momentum Indicator for SBUX turns positive, indicating new upward trend
SBUX saw its Momentum Indicator move above the 0 level on November 08, 2024. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 96 similar instances where the indicator turned positive. In of the 96 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for SBUX just turned positive on November 11, 2024. Looking at past instances where SBUX's MACD turned positive, the stock continued to rise in of 53 cases over the following month. The odds of a continued upward trend are .
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 .
The Aroon Indicator entered an Uptrend today. In of 214 cases where SBUX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 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 (10.792). P/E Ratio (30.955) is within average values for comparable stocks, (59.102). Projected Growth (PEG Ratio) (2.073) is also within normal values, averaging (1.865). Dividend Yield (0.023) settles around the average of (0.037) among similar stocks. P/S Ratio (3.221) is also within normal values, averaging (8.692).
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 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 83, placing this stock slightly better than average.
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General Information
a producer of coffee and tea
Industry Restaurants