Industry: specialized cafes
In Q2 2017 Starbucks reported the growth of return per share by 15% YoY up to 0.45% slightly exceeding the expectations of The Wall Street analysts. The growth of RPS was caused by the increase of revenue and operational income margin. Within the previous 12 month Starbucks repurchased 18.7 mln shares. The company announced the payment of $0.25 per share which corresponds to dividend income of 1.7%.
Starbucks reduced its forecast for 2017. The company is waiting for its RPS to make up about $2.08-2.12. In Q3 2017 the value of RPS is expected to make $0.55-0.56.
Within the previous week the stock of Starbucks reduced by 1.53%. S&P500 went down by 1.08% within the same period.
Comparing company’s multiplier with its competitors, we can say that Starbucks shares are neutral.
For the previous two weeks the trading instrument has been dominated by sales. During yesterday’s trading #SBUX broke through the level of 59.90 and consolidated below it. The level acts as “mirror” resistance. The emitter formed the local support level of 59.60. Currently indicators show the strength of the sellers. The shares of the company are under pressure from the negative dynamics of the US stock market. Yesterday the stock of #SPY dropped by 1.77%. Still, positions may be opened from key levels.
Support levels: 59.60, 59.20.
Resistance levels: 59.90, 60.20, 60.60.
If the price consolidates below the local support level of 59.60, one may open short positions. Stop-loss will be placed at 59.85. The target movement level will be 59.10-59.00.
If the quotes of #SBUX overcome the resistance level of 59.90 and consolidate above it, the emitter may develop correction. Stop-loss should be placed at 59.70. There is a potential of movement to 60.30-60.40.
The period of implementation is 2-3 days.