Starbucks Corporation (SBUX): Today's Featured Leisure Loser

Starbucks Corporation ( SBUX) pushed the Leisure industry lower today making it today's featured Leisure loser. The industry as a whole closed the day down 1.3%. By the end of trading, Starbucks Corporation fell $1.77 (-3.3%) to $51.27 on average volume. Throughout the day, 10.7 million shares of Starbucks Corporation exchanged hands as compared to its average daily volume of 8.7 million shares. The stock ranged in price between $51.03-$53.36 after having opened the day at $52.84 as compared to the previous trading day's close of $53.04. Other company's within the Leisure industry that declined today were: Good Times Restaurants ( GTIM), down 11.4%, BJ's Restaurants ( BJRI), down 6.2%, Pinnacle Entertainment ( PNK), down 5.3%, and Cosi ( COSI), down 4%.

Starbucks Corporation purchases and roasts whole bean coffees. It operates 6,705 company-operated stores and 4,082 licensed stores in the United States; and 2,326 company-operated stores and 3,890 licensed stores in Canada, the U.K., China, Germany, Thailand, and internationally. Starbucks Corporation has a market cap of $40.07 billion and is part of the services sector. The company has a P/E ratio of 30.5, equal to the average leisure industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 13.9% year to date as of the close of trading on Tuesday. Currently there are 20 analysts that rate Starbucks Corporation a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Starbucks Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Arcos Dorados Holdings ( ARCO), up 4.2%, Canterbury Park Holding Corporation ( CPHC), up 2.1%, and Premier Exhibitions ( PRXI), up 2%, were all gainers within the leisure industry with Tim Hortons ( THI) being today's featured leisure industry winner.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the leisure industry could consider PowerShares Dynamic Leisure&Entert ( PEJ) while those bearish on the leisure industry could consider ProShares Ultra Sht Consumer Services ( SCC).
null