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

Starbucks Corporation ( SBUX) pushed the Leisure industry lower today making it today's featured Leisure laggard. The industry as a whole closed the day up 1.9%. By the end of trading, Starbucks Corporation fell $4.94 (-9.4%) to $47.47 on heavy volume. Throughout the day, 28.4 million shares of Starbucks Corporation exchanged hands as compared to its average daily volume of 7.4 million shares. The stock ranged in price between $46.12-$48.20 after having opened the day at $46.90 as compared to the previous trading day's close of $52.40. Other company's within the Leisure industry that declined today were: Granite City Food & Brewery ( GCFB), down 7.4%, Asia Entertainment & Resources ( AERL), down 5.4%, Caribou Coffee Company ( CBOU), down 4.8%, and Empire Resorts ( NYNY), down 4.7%.

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 $38.24 billion and is part of the services sector. The company has a P/E ratio of 29.1, 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 Thursday. 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, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Expedia ( EXPE), up 20.1%, Ruth's Hospitality Group ( RUTH), up 16.5%, PokerTek ( PTEK), up 13.3%, and Orient-Express Hotels ( OEH), up 8.2%, were all gainers within the leisure industry with Priceline.com ( PCLN) being today's featured leisure industry leader.

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

More from Markets

Dow Trades Above 25,000 as U.S.-China Trade Tensions Thaw

Dow Trades Above 25,000 as U.S.-China Trade Tensions Thaw

Treasury Secretary Mnuchin: 'Take the Over' on U.S. GDP Topping 3% This Year

Treasury Secretary Mnuchin: 'Take the Over' on U.S. GDP Topping 3% This Year

Video: Why the Stock Market Is Discounting China Trade Fears for Now

Video: Why the Stock Market Is Discounting China Trade Fears for Now

Global Stocks Rally as US-China Trade War Thaws; Dow Could Test 25,000

Global Stocks Rally as US-China Trade War Thaws; Dow Could Test 25,000

GE Confirms $11.1 Billion Transportation Merger With Wabtec

GE Confirms $11.1 Billion Transportation Merger With Wabtec