(SBUX) Starbucks - Ratings and Ratios

Starbucks Corporation is a global coffee giant that operates through three main segments: North America, International, and Channel Development. The company is a roaster, marketer, and retailer of coffee, offering a wide range of beverages, including coffee, tea, and ready-to-drink products, as well as various food items such as pastries, breakfast sandwiches, and lunch options. Starbucks also licenses its trademarks through licensed stores and grocery and foodservice accounts, and partners with organizations like the Global Food Banking Network to support food security and reduce food waste. With a portfolio of brands including Starbucks Coffee, Teavana, and Seattles Best Coffee, the company has established itself as a leader in the coffee industry. Founded in 1971 in Seattle, Washington, Starbucks continues to expand its global presence, with a strong online presence at https://www.starbucks.com.

From a technical analysis perspective, SBUX is currently trading at $83.95, slightly below its 20-day Simple Moving Average (SMA) of $84.15. The stock is also below its 50-day SMA of $86.13 and significantly below its 200-day SMA of $94.71, indicating a potential downtrend. The Average True Range (ATR) is 2.68, representing a 3.19% daily price movement. Given the current support and resistance levels, a potential trading range is between $79.6 and $91.5. With the current price hovering around the support level of $79.6 and resistance at $87.1, a breakout above $87.1 could signal a potential uptrend, while a drop below $79.6 may indicate further downside.

Fundamentally, Starbucks has a market capitalization of $95.5 billion and a price-to-earnings (P/E) ratio of 30.53, indicating a relatively high valuation. The forward P/E ratio is even higher at 34.72, suggesting that investors are expecting significant growth in the future. However, the Return on Equity (RoE) is negative at -41.05, which is a concern. Despite this, the companys diversified brand portfolio, global presence, and efforts to support food security and reduce food waste may contribute to its long-term growth prospects.

Forecast: Based on the technical and fundamental analysis, a potential forecast for SBUX is that it may continue to trade within the range of $79.6 to $91.5 in the short term. However, if the company can demonstrate improvement in its RoE and deliver on its growth expectations, a breakout above $91.5 could be possible, potentially targeting the next resistance level at $96.2. Conversely, if the stock breaks below $79.6, it may signal a further decline, potentially towards the 52-week low of $70.75. Investors should closely monitor the companys fundamental performance and technical trends to adjust their strategies accordingly.