Starbucks Corp. (NASDAQ: SBUX)
The massive coffee chain, Starbucks, is moving higher due to its innovative way of getting customers to pay for their product. In the month of August, mobile internet payment made up nearly 22% of the total sales for the month. Shares did close lower on Friday September 18th at $56.84 a share. Shares are up dramatically from the beginning of the year. news.investors.com
SBUX Earnings & Outlook
A consensus of 32 analysts on September 18th predicted that Starbucks will outperform the market. This has been the consensus for SBUX since the year 2009 – Markets. EPS estimates for Starbucks on October 29, 2015 is $0.43 a shares, which is up $0.06 from a year ago.
Investors will be waiting to see how mobile sales perform for Starbucks during the month of September. Certainly, if mobile sales are greater than they were in August, EPS has a better chance of being better than what analysts are predicting.
Starbucks Corp Predictions
Investor’s Business Daily has given Starbucks their highest possible composite rating of 99. This is due to the company’s high return on equity of 42%. The stock has become a top pick for institutional investors. The numbers of mutual funds with SBUX in their portfolio’s has risen dramatically in recent quarters and this is probably due to the fact that analysts estimate a 20% increase in EPS by the end of this year. Analysts are also predicting a 18% rise in EPS for the year 2016. news.investors.com
CEO Confidence
“Capacity remains a focal point of our future growth plans, and we are on track to meet our goal of doubling our cap store count to roughly 10,000 locations, tripling our revenue to over $3 billion and tripling our operating income to over $1 billion over the next five years” said Howard Schultz. This statement was from a July 24, 2015 conference call and displays the confidence that SBUX CEO has in this company. SeekingAlpha
SBUX Technical Analysis
Starbucks has been trending up for almost the entire year. January was a little slow, but when February started the trend really got momentum as shares jumped roughly $2 from $41.38 to $43.25. The stock hit a high of $59.32 this August. The stock gave up some significant gains and gapped down as low as $42.05 from the recent 52 week high. It did recently close down $0.44 to $56.84, but this is still relatively close to the 52 week high. SBUX could see a big push past 52 week highs and over $60 a share. The 52 week high will be a key technical point.
Company Profile
Starbucks Corp. is a marketer, roaster, and retailer of specialty coffee around the world. The company operates on every continent, except Antarctica. Company stores of fresh brewed coffee, tea, and smoothies. Products are sold singularly. It sells some beverage making equipment as well. As recently as August 27th 2015 Starbucks operates 21,000 stores. The company was found in Seattle, Washington in 1985. Yahoo!
