Buy, Sell or Hold: Starbucks (SBUX-Q) — Stock Predictions at Stockchase

NASDAQ:SBUX

79.26

2.87 (3.76%) 1d

Showing 1 to 15 of 327 entries

DON'T BUY

Struggling to evaluate company at this time (poor service and decreasing shop count). Underlying negative trends for the company. Current price not highly attractive. Expecting stock price to decrease. Expecting inflation to negatively affect business.

food services

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TOP PICK

Stockchase Research Editor: Michael O'Reilly Recently reported earnings showed promising growth in comparable sales growth worldwide, including China, and supported a ROE of 56%. The company pays a good dividend, backed by a payout ratio under 55% of cash flow. They have been prudently using some cash reserves to aggressively buy back shares and retire debt. We recommend setting a stop loss at $65, looking to achieve $105 -- upside potential over 33%. Yield 2.6% (Analysts’ price target is $105.06)

food services

COMMENT

He used to think it was a fine company under their former CEO until he heard yesterday's management call where the interim CEO rebuked his predecessor. That was unfair. SBUX was a winner during Covid while other retailers lost their way. But their buyback now is too aggressive and they should allow tipping on their app like Uber does. Same-store sales growth in North America rose 12% YOY. Ex-CEO delivered a good final quarter that saw shares soar today.

food services

DON'T BUY

They report Tuesday and it could be rough no matter what given the lockdown in China. He expects the CEO to address the worker unionization drive.

food services

WATCH

On her watch list. Back on its growth path. Wage pressures, unionization. NA market is saturated, so needs to look outside NA for growth. China growth has been uneven with Covid lockdowns. Wait and see what the CEO has planned.

food services

BUY

He's excited about Schultz returning as (interim) CEO and kicks himself for not buying earlier. The driver is China eventually reopening, a country where Starbucks has a big stake. SBUX can grow there and in the US too as the US opens too. Yes, there are supply and rising wage issues, but Starbucks can grow. The PE has slid from a 33x PE to 20x. He has calls on it and may trim or sell them, but if this pulls back to $80 he will definitely own this. He believes in this company and their command in this industry.

food services

DON'T BUY

He sold it six weeks ago at $98 and is $88 today. It faces rising costs in the US while China is a challenged place. SBUX is no longer a growth stock, but mature. Schultz grew the company, but he's not sure he can lead it through the next phase of growth.

food services

DON'T BUY

Not interested. Share buyers today are buying Howard Schultz (returning as interim CEO, announced today). Starbucks faces rising costs, unionization and overall the economic climate in China is not favourable. It can return to the lower-$80s and maybe today's news leads to stability. But it will take a while for shares to climb high enough for him to buy.

food services

BUY on WEAKNESS

As long term investor believes company is a high quality/predictable business. Would expect ~23x earnings is fair price to pay. Not a favorite industry as retail requires more capital to grow.

food services

BUY

Shares slipped after it reported last night, falling short of estimates which reflects weakness in its Chinese locations, hit by Omicron in the last quarter. At the same, US locations saw unprecedented cost increases. However, numbers are up nicely in US stors where Omicron has blown through. Costs have risen, but the company has raised prices in its store twice, with a third coming, but they haven't dented sales. SBUX shares bounced back in today's session after losses in the after-market the night before.

food services

WATCH

They report Tuesday. Hopes the CEO addresses the unionizing effort and the impact of Omicron on store hours and shifts. Has the Chinese pre-Olympic lockdown impacting SBUX? That's why shares are down 17% YTD.

food services

PAST TOP PICK

(A Top Pick Jan 29/21, Up 9%) Great holding. Still grew despite Covid. China growth has slowed. Still a growth story long term. A bit expensive now, wait a bit for a new purchase.

food services

HOLD

Company has got caught up with union battles. Unionization will affect profitability. Good aspects of company includes exposure to China. Higher trading multiple implies over valued. Closing a lot of locations.

food services

HOLD

He's holding on. Saw two analyst upgrades today. The company faces a slowdown in China's economic growth, but he expects encouraging guidance to come.

food services

BUY

He likes the two upgrades today. This reminds him of Nike four years ago which he missed out on. Starbucks' 2022 PE is 29x. Investor sentiment remains quite good. As long as Starbucks doesn't stumble in execution, their PE will rise. Their customer experience is amazing.

food services

Showing 1 to 15 of 327 entries

Starbucks(SBUX-Q) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 7

Neutral - Hold Signals / Votes : 2

Bearish - Sell Signals / Votes : 5

Total Signals / Votes : 14

Stockchase rating for Starbucks is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Starbucks(SBUX-Q) Frequently Asked Questions

What is Starbucks stock symbol?

Starbucks is a American stock, trading under the symbol SBUX-Q on the NASDAQ (SBUX). It is usually referred to as NASDAQ:SBUX or SBUX-Q

Is Starbucks a buy or a sell?

In the last year, 14 stock analysts published opinions about SBUX-Q. 7 analysts recommended to BUY the stock. 5 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Starbucks.

Is Starbucks a good investment or a top pick?

Starbucks was recommended as a Top Pick by on . Read the latest stock experts ratings for Starbucks.

Why is Starbucks stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Starbucks worth watching?

14 stock analysts on Stockchase covered Starbucks In the last year. It is a trending stock that is worth watching.

What is Starbucks stock price?

On 2022-07-01, Starbucks (SBUX-Q) stock closed at a price of $79.26.

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