Marc Eisen
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Marc Eisen in Chaikin Analytics,

More on SBUX...

The Chaikin Power Gauge Rating for Starbucks Corporation SBUX is Very Bearish due to very poor financial metrics, weak earnings performance and weak price/volume activity. SBUX's financial metrics are very poor due to a high long term debt to equity ratio and high price to book value.

SBUX's financial metrics are very poor. The company may be overvalued and yields a relatively low return on shareholder's equity. The factor rank is based on the stock having high price to book value , low return on equity, and high price to sales ratio, but low long term debt to equity ratio, and relatively high cash flow.

SBUX's earnings performance has been weak. The company experienced relatively poor earnings growth in the past 12 months and is priced relatively high compared to next year's projected EPS. The factor rank is based on the stock having a relatively poor yearly earnings trend, and a relatively high projected P/E ratio, but high earnings growth over the past 3-5 years, better than expected earnings in recent quarters, and consistent earnings over the past 5 years.

Price/volume activity for SBUX is bearish. SBUX has a declining price trend over the past 6 months and has decelerating 4-month trend momentum. The factor rank is based on the stock having weakness vs. its long-term price trend, and negative trend momentum, but price strength versus the market, strong Chaikin Money Flow persistency, and an increasing volume trend.

Expert activity about SBUX is neutral. Shorting of SBUX is low and analysts' opinions on SBUX have been more negative recently. The factor rank is based on the stock having analysts revising earnings estimates upward, a low short interest ratio, and insiders purchasing stock, but pessimistic analyst opinions, and weak performance of the industry group.