Starbucks Corp (NASDAQ:SBUX) is a member of the 120 company Hotels Restaurants & Leisure GICS industry group, which is a segment of the 568 company GICS Consumer Discretionary sector. SBUX has a market value of $81.7 billion which is in the top 10% of its industry group. The current Portfolio Grader ranking for SBUX puts it 78 among the 120 companies in this industry group, which is a below-average position; in the third quartile of the sector with a ranking of 379 among the 568 companies in the sector, and number 3,485 in the nearly 5,000 company Portfolio Grader universe.
Portfolio Grader currently ranks SBUX as a Sell. The approach to investing incorporated in this tool, developed by Louis Navellier, assesses and ranks approximately 5,000 stocks each week from a fundamental and quantitative perspective. This represents no change from the previous week and is the same ranking SBUX has had from Portfolio Grader for 4 months.
The Consumer Discretionary sector is ranked number 12 among the 12 sectors in the Portfolio Grader universe putting it as the least attractive sector of all the GICS sectors. The Hotels Restaurants & Leisure industry group is ranked 41 among the 69 industry groups within the GICS sectors, placing it below-average in terms of the Navellier scoring system.
The scores earned by SBUX are average or below-average scores in 7 of the 8 areas evaluated by Portfolio Grader in the ranking of company stocks.
The company's operational scores are below the industry norms for sales growth, operating margin, and earnings growth. Scores for visibility of earnings are worse than the industry norms for earnings revisions, earnings surprises, and earnings momentum. SBUX's ranking for return on equity is decidedly better than its industry group average but its grade for cash flow is below-average. Based on these fundamental scores, Starbucks places in the top half of the industry group.
Quantitatively, Portfolio Grader uses the Navellier Proprietary Quantitative Score to gauge SBUX's shares from the angle of risk/reward. This exclusive scoring methodology takes into account the relative value of the company's shares based on the current price of the shares relative to its peers, the market and risk associated with its industry and sector groups. Using this risk/reward calculation, SBUX currently scores below-average in its industry group compared to its peers.
Louis Navellier's proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results, with A being 'strong buy' and F being 'strong sell'. Explore the tool here.
Commentary provided by UpTick Data Technologies.