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

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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 0.2%. By the end of trading, Starbucks Corporation fell $0.79 (-1.1%) to $71.85 on light volume. Throughout the day, 2,437,026 shares of Starbucks Corporation exchanged hands as compared to its average daily volume of 4,700,300 shares. The stock ranged in price between $71.79-$72.58 after having opened the day at $72.58 as compared to the previous trading day's close of $72.64. Other companies within the Leisure industry that declined today were: Renren ( RENN), down 8.3%, Dover Downs Gaming & Entertainment ( DDE), down 7.0%, Diversified Restaurant Holdings ( BAGR), down 5.8% and SeaWorld Entertainment ( SEAS), down 3.8%.

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 $54.8 billion and is part of the services sector. Shares are up 36.0% year to date as of the close of trading on Tuesday. Currently there are 16 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, largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the positive front, Century Casinos ( CNTY), up 15.3%, Empire Resorts ( NYNY), up 12.7%, Home Inns & Hotels Management ( HMIN), up 7.5% and Chanticleer Holdings ( HOTR), up 7.5% , were all gainers within the leisure industry with Melco Crown Entertainment ( MPEL) 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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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