Starbucks Shows Strong Momentum but Fails in Final Rating

Starbucks Corp (SBUX) demonstrates notable momentum and passes several criteria but ultimately fails in the final rating assessment. This may lead investors to reassess their position on SBUX.

Date: 22-02-2025

AI Rating: 5

Overview of Starbucks Corp.

Starbucks Corp (SBUX) is highlighted as a large-cap growth stock within the Restaurants industry and receives a rating of 68% from the Multi-Factor Investor model. This rating indicates that while the stock meets several criteria, it did not achieve a 'pass' rating in the final assessment.

Within the review of the stock's performance against the strategy’s tests, Starbucks is noted to pass in market capitalization and standard deviation, suggesting stability and lower risk. However, there is a noted 'fail' in the final rank.

Detailed Criteria Analysis

Specifically, the report indicates that:

Market Cap: PASS - Suggesting good stability in terms of company size.
Standard Deviation: PASS - Indicating low volatility.
Twelve Minus One Momentum: NEUTRAL - Suggesting average performance.
Net Payout Yield: NEUTRAL - Reflecting a steady income return to shareholders.

The final rank indicates that despite passing key metrics, overall performance metrics did not meet expectations to qualify for strong interest from the investment strategy.

The analysis shows that while Starbucks holds various positive attributes such as low volatility and stability, the lack of a strong final ranking might prompt caution among investors as it implies uncertainty in the stock's capacity to perform well in the near future.

Stocks: SBUX