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

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 1.0%. By the end of trading, Starbucks Corporation fell $0.70 (-1.1%) to $60.14 on light volume. Throughout the day, 3,111,027 shares of Starbucks Corporation exchanged hands as compared to its average daily volume of 5,145,300 shares. The stock ranged in price between $59.95-$60.68 after having opened the day at $60.55 as compared to the previous trading day's close of $60.84. Other companies within the Leisure industry that declined today were: Krispy Kreme Doughnuts ( KKD), down 7.5%, Orient-Express Hotels ( OEH), down 6.0%, Premier Exhibitions ( PRXI), down 5.9% and Hyatt Hotels Corporation ( H), down 5.5%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $45.4 billion and is part of the services sector. The company has a P/E ratio of 31.7, above the S&P 500 P/E ratio of 17.7. Shares are up 13.4% year to date as of the close of trading on Tuesday. Currently there are 17 analysts that rate Starbucks Corporation a buy, no analysts rate it a sell, and 7 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, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Tim Hortons ( THI), down 4.0%, PokerTek ( PTEK), down 3.3%, Famous Dave's of America ( DAVE), down 3.2% and Empire Resorts ( NYNY), down 2.6%.

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).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
null

If you liked this article you might like

Ray Dalio Also Thinks AI Will Be a Killer Just Like Tesla's Elon Musk Does

Toys 'R' Us Bankruptcy Filing a Reminder That Amazon Is Crushing Everyone

Stocks Dad Would Have Loved, And Why He Was Right

Amazon, Google and Other U.S. Tech Giants Face a Battle Over Taxes With Europe

Stock Observations; Reviewing Equities: Doug Kass' Views