Starbucks (NASDAQ:SBUX) continued losses for eight straight sessions as the stock closed 0.56% lower at $81.90 on Friday.
The coffee chain lost more than 5.5% in the last seven trading sessions. SBUX is down 12.4% over the past one month. The stock closed 0.63% lower, at $82.36 on Thursday.
Starbucks shares have declined over 10% so far this year, compared to a 12% gain in the broader benchmark index.
As per the Seeking Alpha’s Quant Ratings, SBUX has a Hold rating with a score of 2.76 out of 5. The company received an A for profitability, but a D- grade in growth, a D in momentum and D+ in valuation and revisions dragged down the rating.
Seeking Alpha analysts rated the stock as Sell.
Seeking Alpha analyst Jia Ming Eow rated the stock as Sell, arguing that SBUX’s valuation remains high relative to stagnant growth and falling profitability, making it unattractive compared to broader market indexes.
“Starbucks’ brand moat is fading as competition intensifies, margins contract, and revenue growth remains sluggish, especially in North America,” highlighted Jia Ming Eow.
Turning to the Wall Street community, 17 out of 35 analysts gave SBUX a Buy and above rating. 15 analysts have given the stock a Hold recommendation, while three recommended Strong Sell.