Starbucks Corp. stock trades under the ticker SBUX & has shown recent bullishness that traders & investors should research further.
SBUX stock closed at $116.91/share on Friday 11/5/2021.
Starbucks Corp. SBUX Stock’s Technicals Broken Down
SBUX Stock Price: $116.91
10 Day Moving Average: $112.53
50 Day Moving Average: $113.75
200 Day Moving Average: $111.96
RSI: 60.11
MACD: -0.077
SBUX completed a bullish MACD crossover yesterday, after trading on above average volume for the last few days.
They also gapped up 4%+, bullishly crossing over their 10 & 50 Day Moving Averages as well.
With an RSI that is only slightly overbought, there looks to be additional momentum in the near-term to continue pushing SBUX’s share price higher.
The next area of major resistance is the $120 level.
Starbucks Corp. SBUX Stock As A Long-Term Investment
Starbucks has been a longterm hold favorite for many investors.
Their P/E (ttm) is 33.03, and they do not have a positive P/B, which is to be expected as they operate a chain of restaurants that are focused on renting their space.
SBUX stock’s Beta is 0.83, meaning that it tends to move less aggressively than the broader market, which is another perk for investors focused on the long-term.
Starbuck’s balance sheet could look better though, with Total Cash (mrq) of $6.62B & Total Cash (mrq) of $23.61B.
They offer a dividend yield of 1.64%, which looks safe with a payout ratio of just over 50%.
SBUX also enjoys 70% of their share float being held by institutional investors.
Starbucks Corp. SBUX Stock As A Short-Term Trade Using Options
Short-term oriented traders can profit off of SBUX stock’s recent momentum by using options.
I am looking at the contracts with the 11/19 expiration date.
The $116, $117 & $118 calls all look liquid enough to trade & are either in, at or near being in the money by a matter of percentage points.
The $119 & $118 puts also look appealing as a hedge, although they have less open interest, meaning that traders see more near-term upside than downside for SBUX’s share price.
Tying It All Together
Overall, SBUX stock looks to be appealing in both the near-term & long-term.
Investors will like collecting a safe dividend from a stock that is less volatile than the broader market, with a fair valuation.
Traders will like their current momentum which looks poised to continue climbing in the near-term based on their technicals.
Starbuck’s Corp. stock is worth taking a closer look at, regardless of what your trading style & time frames are.
*** I DO NOT OWN SHARES OF SBUX STOCK ***