As one of the 569 companies in the GICS Consumer Discretionary sector Starbucks Corp (NASDAQ:SBUX) is a component of the 120 company Hotels Restaurants & Leisure GICS industry group within this sector. SBUX's market value is $81.5 billion which falls in the top 10% of its industry group. The current Portfolio Grader ranking for SBUX puts it 83 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 390 among the 569 companies in the sector, and number 3,483 in the nearly 5,000 company Portfolio Grader universe.
Portfolio Grader currently ranks SBUX as a Sell. With unique fundamental and quantitative metrics developed by Louis Navellier, this stock analytical tool researches approximately 5,000 stocks weekly. The current Portfolio Grader recommendation on the shares has been in place for 4 months.
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 32 among the 69 industry groups within the GICS sectors, placing it near the average in terms of the Navellier scoring system.
The company has realized average or below-average scores in 7 of the 8 areas analyzed 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 ranking for return on equity is much 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.
Portfolio Grader uses the Navellier Proprietary Quantitative Score to gauge SBUX's shares from the aspect of risk/reward. This unique scoring methodology considers 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.