Starbucks Corporation (SBUX): Today's Featured Services 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 Services sector higher today making it today's featured services winner. The sector as a whole closed the day up 1.2%. By the end of trading, Starbucks Corporation rose $0.70 (1.1%) to $63.52 on light volume. Throughout the day, 3,708,633 shares of Starbucks Corporation exchanged hands as compared to its average daily volume of 5,028,200 shares. The stock ranged in a price between $62.78-$63.57 after having opened the day at $62.92 as compared to the previous trading day's close of $62.82. Other companies within the Services sector that increased today were: ENGlobal Corporation ( ENG), up 29.0%, PDI ( PDII), up 23.1%, Empire Resorts ( NYNY), up 23.1% and ITT Educational Services ( ESI), up 17.8%.
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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 $47.2 billion and is part of the leisure industry. The company has a P/E ratio of 32.0, above the S&P 500 P/E ratio of 17.7. Shares are up 17.7% year to date as of the close of trading on Monday. 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, increase in net income, notable return on equity 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 negative front, InfoSonics Corporation ( IFON), down 17.1%, SED International Holdings ( SED), down 14.2%, Bioanalytical Systems ( BASI), down 12.3% and YOU On Demand Holdings ( YOD), down 11.5%.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

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