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

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 lower today making it today's featured Leisure laggard. The industry as a whole closed the day down 0.1%. By the end of trading, Starbucks Corporation fell 71 cents (-1.2%) to $57.41 on light volume. Throughout the day, 4.1 million shares of Starbucks Corporation exchanged hands as compared to its average daily volume of 5.7 million shares. The stock ranged in price between $57.18-$58 after having opened the day at $57.96 as compared to the previous trading day's close of $58.12. Other companies within the Leisure industry that declined today were: PokerTek ( PTEK), down 3.6%, Orbitz Worldwide ( OWW), down 3.2%, Einstein Noah Restaurant Group ( BAGL), down 3%, and Multimedia Games ( MGAM), down 2.9%.
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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 $43.31 billion and is part of the services sector. The company has a P/E ratio of 31.1, above the S&P 500 P/E ratio of 17.7. Shares are up 8.4% year to date as of the close of trading on Monday. Currently there are 18 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, growth in earnings per share, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Pizza Inn Holdings ( PZZI), up 15.4%, Home Inns & Hotels Management ( HMIN), up 5.9%, Chanticleer Holdings ( HOTR), up 5.8%, and Orient-Express Hotels ( OEH), up 4.3%, were all gainers within the leisure industry with MGM Resorts International ( MGM) 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).

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