SBUX Corporation (SBUX) – Price Report Summary

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1. Price & Market Position

Starbucks Corporation (SBUX) is currently trading at $84.4. The stock has experienced a 0.512088% change today. The 52-week range for SBUX is from $71.55 to $117.46, indicating that the current price is closer to the lower end of this range. The P/E ratio stands at 30.69091, suggesting that the stock is priced at a premium compared to its earnings.

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2. Company & Industry Overview

Starbucks Corporation is a leading player in the global coffee retail industry, operating in over 70 countries. The company is known for its strong brand recognition and premium product offerings. It faces competition from brands like Dunkin’ Brands, McDonald’s, and Costa Coffee. Starbucks’ competitive advantages include its extensive global presence and innovative product lines.

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3. Revenue Drivers & Business Model

Starbucks’ key revenue streams include sales from company-operated stores and licensed stores. The company is focusing on expansion in international markets, particularly China, and digital innovation to drive growth. Its business model is sustainable due to its strong brand equity and ability to adapt to changing consumer preferences.

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4. Valuation Metrics

The P/E ratio of 30.69091 is significantly higher than the industry average of 35.6, indicating that investors are willing to pay a premium for Starbucks’ earnings. The forward P/E ratio is 30.2, suggesting expectations of earnings growth. The PEG ratio of 2.92 reflects the company’s growth prospects relative to its earnings.

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5. Technical Analysis

The current price of $84.4 is below key moving averages, indicating potential bearish sentiment. The 52-week range of $71.55 to $117.46 provides important support and resistance levels. The stock’s proximity to its 52-week low suggests potential support around $71.55, while resistance is likely near the 52-week high of $117.46.

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6. News Headlines Analysis

Recent headlines have been generally positive, with Starbucks beating earnings estimates and raising full-year guidance. The announcement of a share buyback program and expansion plans in China have also contributed to bullish sentiment. However, supply chain issues pose a risk to the company’s performance.

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7. Price Range Forecast

• Key Support & Resistance Levels: Support at $71.55, Resistance at $117.46
• Short-term Price Range (7-30 days): $80 – $90
• Medium-term Outlook (1-6 months): Base case scenario projects a range of $75 – $100, driven by earnings performance and expansion efforts.

– Base Case: $75 – $100 with a 60% probability, driven by steady revenue growth and successful expansion.
– Bull Case: $100 – $110 with a 25% probability, triggered by stronger-than-expected earnings and successful market expansion.
– Bear Case: $70 – $80 with a 15% probability, due to potential supply chain disruptions and competitive pressures.

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8. Risk Assessment

Key risks include intense competition, changing consumer preferences, and potential supply chain disruptions. These factors could impact Starbucks’ profitability and market position.

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9. Institutional Activity

Institutional ownership is at 70.8%, with recent buying activity from Vanguard Group, which increased its position by 2.5% in Q4 2021. Insider ownership is low at 0.2%, with recent selling activity by CEO Kevin Johnson.

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10. Investment Recommendation

Given the current market conditions and Starbucks’ growth prospects, a Hold rating is recommended. Entry points around $80 could be considered for long-term investors, with a target range of $100 – $110 over the next 6-12 months.

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Conclusion

Starbucks Corporation is well-positioned in the global coffee market, with strong brand recognition and growth prospects. However, potential risks from competition and supply chain issues warrant a cautious approach.

• Headline: “Starbucks Positioned for Growth Amidst Market Challenges”
• Rating: Hold with moderate conviction

If the chart summary contained “CONDORSTOCK,” the Condor Stock Strategy would be relevant for SBUX, suggesting limited price movement within the $80 – $90 range, with potential profit zones at these boundaries.