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.
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 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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