Starbucks (SBUX) shares snapped six straight sessions of gains, as the stock closed 0.3% lower at $93.01 on Friday.
The coffee chain giant gained about 6% in the preceding six sessions. Overall, the stock lost over 8% last year, compared to the over 16% rise in the broader S&P 500 Index.
SBUX is up nearly 9% over the past one month. The stock closed over 2% higher on Thursday at $93.28.
Looking at Seeking Alpha’s Quant Rating, SBUX has a Hold rating with a score of 2.90 out of 5. The company received an A in the prospect of profitability, while it got a D in the valuation factor.
Turning to the Wall Street community, 17 analysts gave SBUX a Buy and above, 16 analysts have given the stock a Hold recommendation, and three recommended Strong Sell. Seeking Alpha analysts are also cautious and see the stock as a Hold.
A recent Seeking Alpha analysis noted that the company faces risks from increased competition, labor actions, tariffs, and a relatively weak China joint venture valuation, while potential rate cuts may offer some relief.
“Given execution risks and a challenging market environment, SBUX’s risk-reward profile does not justify a buy at current levels, despite possible long-term upside,” it said.
The company permanently closed about 400 U.S. stores last year amid its renewed focus on profitability and customer experience under the leadership of CEO Brian Niccol.
Hedgeye analyst Bennett Cheer said after more than a year under Niccol’s leadership, Starbucks has moved through the heaviest lifting phase of its turnaround.