Analysis of Sales Growth Make Starbucks (SBUX) a Sell

SBUX stock a sell in latest weekly rating.

By Portfolio Grader

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Starbucks Corp (NASDAQ:SBUX) is ranked as a Sell using the system of Louis Navellier for investing and his Portfolio Grader stock evaluator. This represents no change from the previous week and is the same ranking SBUX has had from Portfolio Grader for 4 months.

With a $81.3 billion market value, SBUX ranks in the top 10% of its industry group, Hotels Restaurants & Leisure, and in the top 10% of its sector group, Consumer Discretionary, in market value. From the perspective of investment attractiveness, the stock's current Portfolio Grader ranking places it 96 among the 120 companies in this industry group, a position that is well below-average; squarely in the bottom quartile of the sector with a ranking of 439 among the 568 companies in the sector of its Consumer Discretionary sector, and number 3,893 in the nearly 5,000 company Portfolio Grader universe.

Currently, Portfolio Grader ranks the Consumer Discretionary sector number 11 among the 12 sectors in its universe putting it in the bottom quartile 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 company has received average or below-average scores in 7 of the 8 fundamental metrics used by Portfolio Grader in the ranking of company stocks.

SBUX'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 score for return on equity is strikingly better than its industry group average but its grade for cash flow is below-average. Starbucks' fundamental scores give SBUX a place in the top half of the industry group.

The Navellier Proprietary Quantitative Score is used by Portfolio Grader to gauge SBUX's shares from the viewpoint of risk/reward. This proprietary scoring methodology evaluates the relative value of SBUX'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, the company currently scores well 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.


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