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

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Starbucks Corporation ( SBUX) pushed the Leisure industry higher today making it today's featured leisure winner. The industry as a whole closed the day up 0.3%. By the end of trading, Starbucks Corporation rose 83 cents (1.5%) to $55.70 on average volume. Throughout the day, five million shares of Starbucks Corporation exchanged hands as compared to its average daily volume of 6.5 million shares. The stock ranged in a price between $54.66-$55.72 after having opened the day at $54.77 as compared to the previous trading day's close of $54.87. Other companies within the Leisure industry that increased today were: Boyd Gaming Corporation ( BYD), up 14.4%, Krispy Kreme Doughnuts ( KKD), up 5.5%, Papa John's International ( PZZA), up 4.9%, and Cosi ( COSI), up 4.7%.
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Starbucks Corporation operates as a roaster, marketer, and retailer of specialty coffee worldwide. As of September 30, 2012, the company operated 9,405 company-operated stores and 8,661 licensed stores. Starbucks Corporation has a market cap of $41.1 billion and is part of the services sector. The company has a P/E ratio of 29.5, above the S&P 500 P/E ratio of 17.7. Shares are up 2.3% year to date as of the close of trading on Friday. Currently there are 20 analysts that rate Starbucks Corporation a buy, no analysts rate it a sell, and seven 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, notable return on equity, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, Asia Entertainment & Resources ( AERL), down 5.7%, Nevada Gold & Casinos ( UWN), down 4.3%, Granite City Food & Brewery ( GCFB), down 3.6%, and Arcos Dorados Holdings ( ARCO), down 3.5%, were all laggards within the leisure industry with MGM Resorts International ( MGM) being today's leisure industry laggard.

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).

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