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Starbucks Stock Relative Strength Rating Climbs To 73; Funds Buying At Brisk Pace

If the Street consensus is right, Starbucks stock could be brewing a fresh breakout. On Wednesday, Starbucks (SBUX) earned a positive adjustment to its Relative Strength (RS) Rating, from 70 to 73.




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The 73 RS Rating means Starbucks stock has outperformed 73% of all stocks over the past year.

Starbucks Stock Improves, Still Needs Work

Typically, the market’s biggest winners have an RS Rating of above 80 in the early stages of their moves. See if Starbucks can continue to show renewed price strength and clear that threshold.

Among other key ratings, Starbucks stock holds a mediocre 54 EPS Rating and a good but not great 76 Composite Rating.

IBD’s Composite Rating combines five separate proprietary ratings of fundamental and technical performance. The best growth stocks have a Composite Rating of 90 or better.

However, the Street seems to be looking ahead, and expecting stronger growth for Starbucks stock. The Seattle-based company, which operates more than 32,660 coffee shops globally, has a B+ Accumulation/Distribution Rating, on an A+ to E scale. That indicates moderately strong buying by funds over the past 13 weeks.

Taking a look at revenue and profit performance, Starbucks has posted rising EPS growth in each of the last three reports. Revenue growth has been a different story, coming in at 0% last quarter.

Still, CEO Kevin Johnson is optimistic about 2021. “We have positioned Starbucks for the inevitable great human reconnection that we see unfolding in the U.S. and will propagate in every market around the world, where people once again connect with others face-to-face,” he said in the fiscal Q2 earnings release.

Earnings Due In 2 Weeks

Starbucks plans to report fiscal third quarter numbers after the market closes on July 27. Starbucks stock bottomed at 50.02 in late March 2020 amid the coronavirus market crash. It was trading at 120.04 Wednesday afternoon, up 0.4% for the day, and up more than 100% from its 2020 low.

Starbucks stock holds the No. 15 rank among its peers in the Retail-Restaurants industry group. Yum China (YUMC) and Darden Restaurants (DRI) are among the group’s highest-rated stocks.


Looking For Winning Stocks? Try This Simple Routine


Starbucks is trading within a buying range after breaking past a 119.08 buy point in a cup without handle. Once a stock moves 5% or more beyond the original entry, it’s considered out of buy range.

As you try to find the best stocks to buy and watch, keep a close on eye on relative price strength.

IBD’s proprietary RS Rating tracks technical performance by using a 1 (worst) to 99 (best) score that shows how a stock’s price action over the trailing 52 weeks matched up against all other stocks.

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